“Larger Deficits, More Inequality”: The House Republicans’ Head Scratching Economics
Whether you worry about the sluggish recovery, budget deficits, or widening inequality, you should be scratching your head at what the House of Representatives is up to this week.
On the one hand, the House will likely pass the small business tax cut sponsored by House Majority Leader Eric Cantor, which adds $46 billion to the deficit, largely benefits very high-income taxpayers, and has little potential for creating jobs. On the other hand, the House Agriculture Committee has approved a proposal, as part of its deficit reduction mandate, to cut $36 billion from the Supplemental Nutrition Assistance Program—formerly food stamps—a program that goes mainly to low-income households and is one of the best policies we have for creating jobs in a weak economy.
In Tuesday’s post on the New York Times Economix blog, Bruce Bartlett, who held senior policy roles in the Reagan and George H.W. Bush administrations and served on the staffs of Reps. Jack Kemp and Ron Paul, asks the question, “Do small businesses create jobs?” He appropriately cites the research showing that politicians’ worship of small businesses as jobs creators is misguided, and that it is start-up firms, not small firms per se, that are the job creators. Moreover, many of those who would benefit from the tax cut are affluent doctors, lawyers, and stockbrokers—hardly the local mom and pop store that most people imagine when they hear the phrase “small business.”
Bartlett is scathing on the Cantor bill:
There may be policies that would increase the number of business start-ups and aid employment this way. But an across-the-board tax cut for every small business, defined only in terms of employment, is nothing but …[a] giveaway unlikely to create any jobs whatsoever.
Bartlett’s indictment is backed up by standard “multiplier” or “bang-for-the-buck” analyses from the Congressional Budget Office and private analysts like Mark Zandi, chief economist of Moody’s Analytics. In contrast to an increase in SNAP benefits, which they find to be among the most cost-effective measures for stimulating economic growth and job creation in a weak economy, both the Congressional Budget Office and Zandi find business tax cuts similar to the Cantor bill to be among the least effective. The economic growth and job creation impact per dollar of nutritional assistance spending is six to eight times larger than that of an across-the-board tax cut.
Here is what the House is doing with these two measures: It is adding $46 billion of tax cuts, nearly half of which will go to those making more than $1 million, to the budget deficit. According to the official Joint Committee on Taxation estimate, about $45 billion of it will be received in 2012-13, when the economy could in fact use a boost to jobs. At the same time, any stimulus from the tax cut will be wiped out by the $8 billion of the $36 billion SNAP cut that also would occur in 2012-13.
The bottom line on these actions is that they produce larger budget deficits, more inequality, and no net new jobs. So when I see the House moving in exactly the opposite direction of what is fair and makes economic sense, I’m inclined to ask: “Is it really more politically appealing to cut taxes for millionaires and increase the budget deficit than to maintain food benefits for the poor that also give an extra boost to the economic recovery?”
By: Chad Stone, Chief Economist at the Center on Budget and Policy Priorities, Washington Whispers, U. S. News and World Report, April 19, 2012
“There He Goes Again”: Mitt Romney’s ‘92 Percent’ Lie
And they say Mitt Romney can’t be trusted! Why, the man is as consistent as the sun coming up in the morning.
Mitt Romney can always be counted upon—for intellectual dishonesty.
In the latest example of his egregious lack of intellectual integrity, Romney—desperate to reverse the GOP’s catastrophic loss of popularity among women voters—invented a fictitious Obama administration “war on women” and then claimed as proof the disproportionate job losses suffered by women during the second wave of the recession.
Romney’s misrepresentation of labor-force trends was hardly surprising; we’ve come to expect misleading and untruthful statements from a candidate infamous for denying he ever said things he did say and insisting he didn’t do things he did do.
“The real war on women has been waged by the policies of the Obama administration,” Romney claimed on This Week. “Did you know that of all the jobs lost during the Obama years, 92.3 percent of them are women?”
It’s enough to make you wish that Ronald Reagan were still around to shake his head sorrowfully and say, “There he goes again.”
In the absence of Reagan and his famous line, Treasury Secretary Timothy Geithner dutifully made the rounds yesterday, trying to explain what was wrong with Romney’s charge. “It’s a ridiculous argument,” Geithner said, noting that the first round of job losses affected mostly men, particularly in construction and manufacturing, while subsequent budget cuts by state and local governments eliminated many jobs held primarily by women, many of them teachers.
The Obama administration was far from alone in rejecting Romney’s claims; virtually every independent analysis dismissed them as “mostly false,” as the nonpartisan fact-check site Politifact put it.
But Romney’s accusations were worse than false; they were the political equivalent of that old joke about the guy who begs the judge for mercy, saying he shouldn’t be convicted of murder because he’s an orphan—while neglecting to mention that he’s an orphan because he killed his parents.
As any debater knows, making your case is about the facts you include, but it’s also about the facts you leave out. And when it comes to the nation’s economic woes, the facts that Romney leaves out include the culpability of Republican policies and office holders for the dismal state of the labor market—particularly when it comes to women.
First of all, most of the catastrophic job losses affecting men actually occurred while President Bush was still in office. According to the Bureau of Labor Statistics, men lost 5,355,000 jobs between December 2007 and June 2009, whereas women lost less than half that number—“only” 2,124,000 jobs.
But after that devastating first hit, men’s job losses slowed, whereas women’s accelerated. Between January 2009 and March 2012, men lost 57,000 jobs, but women lost 683,000 jobs. Of those 683,000 jobs, 64 percent were in government, and 36 percent were in the private sector.
And it was Republican office holders at the state and local level, not Democrats at the federal level, who were responsible for a disproportionate share of those losses. According to a study by the Roosevelt Institute, 11 states that went Republican in 2010 accounted for more than 40 percent of all state- and local-government job losses.
But Romney’s claim that President Obama has destroyed women’s jobs leaves out that part, just as it omits any acknowledgment of the terrifying fiscal mess that Obama inherited from a disastrous Republican administration when he came into office.
Although Romney’s specious statistics were designed to scare women into thinking that the Obama administration has somehow vaporized huge numbers of women’s jobs while leaving men virtually unscathed, that’s hardly the reality. Of all the jobs lost since 2007, only 39.7 percent were held by women; more than 60 percent were held by men. The recession has been terrible for everyone, and it hit women’s jobs somewhat later than it hit men’s jobs, but it’s not as if anyone escaped unscathed.
Mitt Romney surely knows this—and yet his attack on Obama might just as easily have been leveled by someone who was completely clueless about labor-force trends, the structural reasons that explain how they happen, and what they mean.
No one who’s followed the presidential campaign, let alone Romney’s political career, could possibly be surprised that he distorted the facts; he’s an old hand at that stuff. But what’s really startling is how stupid his analysis was.
Romney keeps telling voters they should elect him because Obama broke the nation’s economy and he’s such a smart businessman he knows how to fix it.
But if his latest salvo is any indication of how well Romney understands the economy, Harvard Business School should demand that he give back his M.B.A.
By: Leslie Bennetts, The Daily Beast, April 16, 2012
“A Legitimate Point”: Ann Romney’s Not Your Typical Working Woman
Hilary Rosen made a legitimate point the wrong way.
Rosen — a Democratic activist, CNN commentator and, full disclosure, friend of Ruth — was talking about Mitt Romney’s move to deploy his wife as official ambassador to the land of women.
“Guess what?” Rosen said. “His wife has actually never worked a day in her life. She’s never really dealt with the kinds of economic issues that a majority of the women in this country are facing.”
Awoogah. Awoogah. Repeat after me: The acceptable formulation is “work outside the home.”
As Rosen, mother of two, well knows — and was reminded with Twitter speed Wednesday night — staying at home with the kids is the very definition of hard work. A day at the office, with no sticky little hands tugging at you, can feel like a vacation.
And Ann Romney, as she reminded us in the campaign video that touched off Rosen’s comments, stayed home with five boys. Six, she said, if you count Mitt. “Believe me, it was hard work,” Ann retorted in her first ever tweet.
But Rosen’s fundamental point — that Ann Romney’s experience is far from typical, that she has not grappled with the economic and family issues that face many women today — remains true.
You don’t have to be a combatant on either side of the Mommy Wars to recognize that Ann Romney’s privileged life experience is not typical. She’s never had to worry about the price of a gallon of gas as she filled up the Cadillacs. She is at the tail end of a generation that did not agonize over the choice of whether to stay home with the kids and from an economic platform that gave her the luxury of making that choice.
As Rosen wrote later on the Huffington Post, “Nothing in Ann Romney’s history as we have heard it — hardworking mom she may have been — leads me to believe that Mitt has chosen the right expert to get feedback on this problem he professes to be so concerned about.”
In some ways, the most interesting aspect of Rosen’s comments was the swiftness with which the Obama campaign moved to criticize them — this after Romney adviser Eric Fehrnstrom quickly posted video of Rosen’s remarks and incorrectly describing her as an “Obama adviser.”
Actual Obama adviser David Axelrod pronounced himself “disappointed” in Rosen and termed the remarks “inappropriate and offensive.” Actual Obama campaign manager Jim Messina out-tweeted him: “I could not disagree with Hilary Rosen any more strongly.” Really? I can think of a lot of things that I’d disagree with more strongly. “Her comments were wrong and family should be off-limits.”
Again, really? When you enlist your wife for video testimonials, when you repeatedly punt to her on questions about What Women Want, it seems to me that she is decidedly on-limits.
Rosen erred in her seemingly dismissive phraseology, not in talking about the candidate’s wife. Romney opened the door to that.
By: Ruth Marcus, Opinion Writer, The Washington Post, April 12, 2012
“Anti-Women Republican Women”: Romney’s Female Surrogates Oppose Women’s Rights
Mitt Romney thought he had found the right wedge to drive between President Obama and women: unemployment. On Wednesday morning Romney started the day off with a speech in Hartford, Connecticut, blaming Obama for job losses among women since he took office. Said Romney:
I was disappointed in listening to the President as he’s saying ‘Republicans are waging a war on women.’ The real war on women is being waged by the President’s failed economic policies.… These are just some statistics which show just how severe the war on women has been by virtue of the President’s failed policies. The number of jobs … this is an amazing statistic…the percentage of jobs lost by women in the President’s three years, three and a half years, 92.3 percent of all the jobs lost during the Obama years have been lost by women. 92.3 percent!
This is merely a variation on the same intellectually dishonest nonsense that Republicans have been slinging at Obama for years. There is a lag between when a president takes office and when his policies are imposed, then take effect, and then have measurable results. The job losses during Obama’s first year in office are the result of the economic collapse that began before he was elected. Since then, the private sector has been slowly adding jobs. The public sector, meanwhile, has been shedding jobs because there is also a lag between an economic downturn and the compressed government budgets that force layoffs of civil servants. Also the president cannot pass everything he wants by fiat. Obama and other Democrats have pushed for stimulus measures such as aid to states that would reduce the number of teachers, police officers and so forth getting laid off. That would benefit both citizens who depend on their services and the economy as a whole. Republicans have refused to vote for these bills on the grounds that we cannot afford to add to the national debt to pay for them, and then turned around hypocritically lambasted Obama for the job numbers that are the direct result of Republican policies.
And that is just what Romney is doing on the subject of women’s employment. As Slate’s Matthew Yglesias explains:
Recessions hit male-dominated highly cyclical sectors like construction and manufacturing first. Women tend to disproportionately work in sectors like health care and education that show slow and steady job growth. But those male-dominated cyclical sectors also bounce back relatively quickly. So since the recession started more than a year before Obama’s inauguration, male job losses were close to bottoming out by the time Obama took office and he’s presided over a lot of rebound growth in male employment. Women, by contrast, have been devastated by cascading waves of teacher layoffs.
No wonder New York Times reporters Ashley Parker and Trip Gabriel labeled Romney’s claim “misleading for several reasons.”
Mere intellectual dishonesty is a daily operation for Romney, and it would hardly have caused a mainstream media kerfuffle. But on a conference call Wednesday Romney’s advisers were dumbstruck when asked whether he supports the Lilly Ledbetter Fair Pay Restoration Act that Obama signed into law in 2009. Romney can’t credibly present himself as an advocate of women in the workplace if he doesn’t support legislation that would protect them from discrimination. (The law makes it possible for women to sue for being paid less than male colleagues within 180 days of the last, rather than first, paycheck. The Romney campaign later said he would not repeal the law.)
But Republican women seem to think they can do just that. Romney’s campaign spent Wednesday flooding reporters with statements from female Republican politicians attacking Obama’s record on women in the economy. Here’s a sample from a conference all they pulled together on Thursday:
“Women have faced massive job losses under this administration and the policies of this president have failed women voters.” —Senator Kelly Ayotte (R-NH)
“Since President Obama and the Democrats can’t run on the record, which includes the longest streak of high unemployment since the Great Depression, a record increase in the national debt, and near-record gas prices they’re working desperately to change the subject. And that’s why they’ve created this whole ‘war on women’ campaign. It’s really designed to distract women from the real issues…. There’s no ‘war on women’ by the Republicans.” —Representative Cathie McMorris-Rodgers (R-WA)
“The Obama policies have failed. In fact, they’ve made the economy worse, and they’ve made it worse particularly for women.” —Representative Cynthia Lummis (R-WY)
Something is funny about all these Republican women rushing to Romney’s defense. None of them support women’s rights. Ayotte co-sponsored the Blunt-Rubio amendment that would allow employers to refuse to cover any medication, including birth control, which they object to on moral or religious grounds. McMorris-Rodgers and Lummis voted against the Ledbetter Fair Pay Act, as did Representative Mary Bono Mack (R-FL), who issued a statement attacking on Romney’s behalf saying, “Women in the Obama economy are facing hardships of historical proportions.” All three congresswomen voted against the Paycheck Fairness Act, which would take other steps to make it easier for women to fight for equal pay, such as prohibiting retaliation by companies against workers who raise wage-parity issues. Just because these politicians are women does not mean they have women’s interests at heart. If they oppose women’s rights to be protected from discrimination in the workplace, then they are hardly credible as critics of the effects of Obama’s policies on women’s economic standing.
And it’s not just at work where Romney’s female surrogates oppose women’s rights. Virginia Delegate Barbara Comstock, who also participated in the Thursday conference call, voted to require women to have an ultrasound prior to an abortion.
The Romney campaign seems to think that merely being a woman makes one qualified to represent all women. As Jessica Valenti notes, this patronizing belief manifests especially in their use of Mitt’s wife Ann as his supposed ambassador to women. But this is only slightly less ludicrous to claim that because a Republican politician with typical anti-women Republican policies happens to have two X chromosomes that she is somehow a spokesperson for women’s political interests.
By: Ben Adler, The Nation, April 13, 2012
“An Unethical Salesman”: The Anatomy Of A Mitt Romney Lie
Mitt Romney’s meaningless 92.3 percent statistic about women and job losses has been thoroughly debunked pretty much everywhere, but let’s take one last look at his original statement:
There’s been some talk about a war on women. The real war on women has been waged by the Obama administration’s failure on the economy. Do you know what percentage of job losses during the Obama years of have been casualties of women losing jobs as opposed to men? Do you know how many women, what percent of the job losses were women? 92.3 percent of the job losses during the Obama years have been women who’ve lost those jobs.
In large part because of its absurdity, Romney’s misleading92.3 percent claim became the focus of attention after he delivered his remarks. When you reread his original statement, however, it’s clear that the bogus statistic wasn’t really the main thing he hoped to communicate. Rather, he offered it as evidence to support his core accusation: that “the real war on women has been waged by” President Obama.
As it turns out, the 92.3 percent stat failed to provide any support whatsoever for that claim—even though it was technically accurate. That’s important: Romney’s 92.3 percent claim wasn’t itself a lie, rather it was a meaningless factoid offered in an attempt to mislead his audience about something else. That’s a time-honored tactic of unethical salesmen, and the fact that Mitt Romney decided to take such a sleazy approach to the issue is a pretty big clue that he was in the middle of telling a pants-on-fire lie.
Sure enough, that’s exactly what it was. Mitt Romney and his Republican Party are waging an all-out assault on Planned Parenthood, birth control coverage, reproductive rights, and even Obamacare’s guarantee that women won’t be charged more for insurance than men just because they can get pregnant. That’s what you call a real war on women. It’s being led by Romney and the Republicans. And when they blame it on President Obama, that’s a lie.
By: Jed Lewison, Daily Kos, April 12, 2012
Share This Blog
Unknown Feed- An error has occurred; the feed is probably down. Try again later.
mykeystrokes.com 