We Don’t Have A Spending Problem, We Have A Fraud Problem
Conservatives seem to have a knack for changing the subject whenever their backs are up against the wall. Over the last several weeks, there has been an orchestrated chorus by the House Republicans in particular to define the so-called “deficit problem” in terms of a wild spending binge by the federal government and the Obama administration. They seem to have easily forgotten who got us into this mess in the first place. That aside, everyone from Speaker John Boehner to Sen Mitch McConnell have been bellowing throughout the halls of Congress and at every available microphone that “We don’t have a revenue problem, we have a spending problem”.
It’s amazing how we all have bought into this line. The media, in its usual rush to get a headline or sound bite, immediately picked up this line and has been the waterboys for the GOP by enabling this hoax on the American people. The focus in most circles has been on spending cuts. Well, we need to re-characterize what is actually going on here. We don’t have a spending problem..we have a fraud problem.
This fraud has been played on the American people by an ideologically depraved Republican party for at least the last ten years. They have made everybody believe that if we just make the wealthy wealthier, somewhere down the road, we will all benefit. There would be job creation with full employment, small businesses would thrive, home prices would fall, gas would cost less than two dollars a gallon and there would be a chicken in every pot. And we believed it hook, line and sinker. Now we are back to square one. None of these things have happened except the fact that we have indeed made the wealthy wealthier. In 2010, the 400 Americans with the highest adjusted gross revenue incomes averaged $345 million. The average federal income tax was 17%, down from 26% in 1992. The income gap just keeps getting wider. Why does this continue to happen? Because we let it happen.
Just last week, Standard and Poor’s accentuated the Republican clarion that the sky is falling. This call comes from the same S&P who supported every toxic waste subprime security under the sky, the same S&P who sold its ratings to the highest bidder. Regulators have also assisted the GOP in their fraud. The Office of the Currency has gone out of its way to protect its clients, ie the banks. Efforts to reign in the banks and stop their predatory loan practices have been foiled at every turn. Even the banks are too big to fail. Profits for banks, corporations, CEO’s, Wall St and the wealthy just keep soaring. There is a lot of back scratching going on here, by and for a lot of wealthy people.
Now that the cat is out of the bag, all of these wealthy people are trying to figure out a way to take the spot light off themselves. They are beginning to see that they may not be able to stave off demands any longer that they pay their fare share. People who have been adversely affected for so many years are now demanding that this fraud be stopped. Teachers and other low wage earners, the poor, seniors, students and union members have all come to believe that they have sacrificed enough. Even some tea party members are beginning to see the light.
For too many years, the Republicans and their wealthy friends have had their hands in everybody’s pockets. Your pocket was the revenue stream for them. General Electric and the Koch Brothers were probably happier than anyone. The Republicans were also happy because their happy friends provided the cover that allows them to do whatever they want to in terms of policy. Being the ideologues that they are, this protection gives them unimpeded opportunity to push forward with their agenda, from dissolving women’s rights, overturning the Affordable Care Act, union busting, replacing Medicare with vouchers and completely eliminating any sense of environmental protection just to name a few. With happy and contented wealthy backers behind you for so many years, how could you go wrong. My, how things are changing.
The revenue stream that the Republicans have depended on for so long is now drying up…that stream is you. They are finding that when they put their hands in your pockets now, they are feeling the seam of the sewn pocket. There just isn’t any more money there. They become flushed and filled with extreme panic, finally realizing that they are going to have their taxes raised after all these years. Their backs are against the wall. So what do they do now? Change the debate..”Let’s raise taxes on everybody”. Nice try!
It’s well past time that shared sacrifice mean exactly what it says. It is no longer acceptable that the poor, under privileged, seniors and the disenfranchised continue to carry the load for corporations, Wall St and their deadbeat tax-evading friends. No, let’s not raise taxes on everybody. Let’s end the fraud and insist that the wealthy start paying taxes just like everyone else. This being Easter Sunday, this may be a good symbolic time to increase taxes only for the rich. We should leave that rate in place for oh say, the next 40 years. Besides, they have accumulated a fair amount of wealth over the years and should easily be able to live off that profit during that time. Perhaps take a trip or two or just wander around the world enjoying their spoils. We will pledge to re-visit this issue after that time. If, and only if, the middle class has reached a level playing field, then we can talk about lowering the tax rate for the wealthy. I think Moses and the Pharaoh’s would be happy with this compromise. So it is written, so let it be done.
By: raemd95, mykeystrokes.com, April 24, 2011
No More Republican Hostage Strategies: On Debt Ceiling, Just A “Clean Bill”
On Fox News this morning, House Majority Leader Eric Cantor (R-Va.) said he’s prepared to play a dangerous game with the federal debt limit — he’ll help block an extension without “guaranteed steps” on unspecified cuts to public investments.
It is, in other words, another hostage strategy. Last week, the message was, “Give us what we want or we’ll shut down the government.” Going forward, the new message is, “Give us what we want or we’ll wreak havoc on the global economy and trash the full faith and credit of the United States government.
The details of the ransom note apparently haven’t been written yet, but we’re getting clues.
The down-to-the-wire partisan struggle over cuts to this year’s federal budget has intensified concern in Washington, on Wall Street and among economists about the more consequential clash coming over increasing the government’s borrowing limit.
Congressional Republicans are vowing that before they will agree to raise the current $14.25 trillion federal debt ceiling — a step that will become necessary in as little as five weeks — President Obama and Senate Democrats will have to agree to far deeper spending cuts for next year and beyond than those contained in the six-month budget deal agreed to late Friday night that cut $38 billion and averted a government shutdown.
Republicans have also signaled that they will again demand fundamental changes in policy on health care, the environment, abortion rights and more, as the price of their support for raising the debt ceiling.
The stakes of the Republicans’ hostage strategy are significantly higher than the budget fight, at least insofar as the consequences would be more severe. Had the GOP shut down the government, it would have been awful for the economy; if the GOP blocks an extension of the debt ceiling, the results could prove catastrophic. As the NYT noted, “The repercussions in that event would be as much economic as political, rippling from the bond market into the lives of ordinary citizens through higher interest rates and financial uncertainty of the sort that the economy is only now overcoming.” The likelihood of “provoking another credit crisis like that in 2008” is very real.
It’s exactly why Federal Reserve Chairman Ben Bernanke recently warned congressional Republicans not to “play around with” this, adding that lawmakers shouldn’t view the debt ceiling as a “bargaining chip.”
Republicans freely admit they’re doing it anyway. Indeed, they’ve been rather shameless about it.
http://www.washingtonmonthly.com/archives/individual/2011_03/028426.php
It seems to me President Obama’s message should be pretty straightforward: “To prevent a crisis, I expect a clean bill.”
This isn’t complicated. Democrats and Republicans have, routinely, raised the debt limit many times. Neither party has ever held it hostage, or made sweeping demands. Economists, government officials, and even financial industry leaders have all told Republicans to reject the political games and do what’s right.
What’s more, as we discussed yesterday, even Republicans know how this has to turn out. House Speaker John Boehner (R-Ohio) recently said failing to raise the debt limit “would be a financial disaster, not only for us, but for the worldwide economy.” Sen. Lindsey Graham (R-S.C.) said failure to raise the debt limit would lead to “financial collapse and calamity throughout the world.”
Democrats and Republicans can have a larger debate about entitlements and debt reduction in the fight over the next fiscal year budget. But there’s not enough time for that to occur before we hit the debt ceiling.
Just pass a clean bill, prevent a calamity, and get ready for the larger budget fight.
Why Boehner Must Shut Down The Government
How should Republican leaders deal with the dilemma of being caught between a base that will view any budget deal with President Obama as a sellout and independent voters who are likely to turn on them if they shut down the government? Jonathan Bernstein thinks they should bite the bullet and cut the best deal they can, figuring they’ll get hit by the base no matter what:
what Boehner has to do is to convince Republican Members of the House that the hit they’re going to take from the right for compromising is inevitable. They’ll be seen as sellouts if they cut a deal before a shutdown. They’ll be seen as sellouts if they cut a deal after a six week shutdown. True believers will always be convinced that complete and total victory was just a week away if only the cowardly politicians had been willing to hang in there. They can’t win that game.
Not a bad argument. The counter is that it’s one thing to cut a deal with Obama, and another to be perceived as cutting that deal without really fighting. If Boehner shuts down the government and then cuts a deal, at least he’s demonstrated some willingness to go to the mat and fight, right? Bernstein is right that he’ll have angry Tea Partiers regardless, but I do think he needs to show that he’s fought the good fight. A deal with Obama is bad no matter what, but a deal without a shutdown looks like surrendering the fort without firing a shot.
The other quibble I have with Bernstein’s analysis is that I don’t think he’s really thinking about this the way Boehner is, or even should, be thinking about this. What is the downside to a shutdown? Republicans get less popular, have a lower chance to win the presidency in 2012, and maybe a higher chance of losing the House as well. What is the downside to cutting a deal? GOP backbenchers revolt against Boehner and depose him as Speaker of the House.
If I’m Boehner, I’m more worried about the guns pointed at my back then the guns pointed at my face. A shutdown increases the small chance that he goes from Speaker to Minority Leader in 2013, but a deal increases the chance that he goes from Speaker to (R-OH) in 2011. The right-wingers do not trust Boehner, and he has very little slack. He also lived through a series of purges and attempted purges in the late 1990s, always taking the form of purists complaining that the leadership had gone soft.
Boehner’s top priority is probably staving off internal revolt. That means shutting down the government.
By: Jonathan Chait, The New Republic, March 30, 2011
Is Birther Donald Trump A Democratic Sleeper Agent?
I’m becoming concerned that a certain political figure in the 2012 presidential field has a sinister, hidden agenda. We all like to laugh and be dismissive–but it’s increasingly hard to ignore the questions about his birth certificate. One has to ask: Is Donald Trump, seemingly a “birther” running for the GOP presidential nod, really an Obama sleeper agent?
Trump has been ratcheting up his embrace of birtherism–the spurious accusation that President Obama was born outside of the United States but has cleverly covered it up, in part by inducing the state of Hawaii to produce a fake birth certificate testifying to his U.S. origin. Trump upped the birther ante Monday morning on Fox News Channel:
This guy either has a birth certificate or he doesn’t. I didn’t think it was such a big deal, but I will tell you, it is turning out to be a very big deal. People are calling me from all over saying please don’t give up on this issue. If you weren’t born in this country, you cannot be president. You have no doctors that remember, you have no nurses — this is the President of the United States — that remember. Why can’t he produce a birth certificate? I brought it up just routinely, and all of a sudden, a lot of facts are emerging and I’m starting to wonder myself whether he was born in this country?
(As an aside, I love the idea that in 1961, when doctors brought a half-white, half-black baby into the world, they should have committed the moment to memory because “this is the President of the United States.”
Trump’s comments are grabbing a great deal of attention. David Frum, for example, wants to know whether Trump is nuts or just thinks GOP primary voters are stupid. Like I said at the top, I’m wondering if perhaps the Donald is really an Obama catspaw.
Republicans firmly grounded in reality have long groused that birtherism is a construct of Democrats, liberals, and the media, a–no pun intended–trumped up issue designed to make conservative look like nutty conspiracy theorists. Polls showing large numbers of GOPers doubting Obama’s origins seem to belie that, as do apparent dog-whistles by GOP leaders who dance around the birther question by treating it as something other than proven fact (“we should take the president at his word,” Michele Bachmann said last month) or refusing to call out the birthers (“it’s not my job to tell the American people what to think,” John Boehner demurred last month).
But with a GOP primary field composed of professional politicians who know better than to tread beyond winks, nods, and dog-whistles, who benefits the most from a GOP candidate willing to go full birther? With Trump in a presidential debate (the first one will be May 2) making birtherism his signature issue, the rest of the GOP field will be forced to weigh in definitively and either alienate the rabid base (the people who vote in Republican primaries and, according to one recent poll, are majority birther) or risk alienating centrist voters.
The Democratic National Committee’s opposition research department must be licking their collective chops. They couldn’t have invented a better sabotage candidate than Trump: Unserious enough to actually wave the bloody birth certificate, but wealthy and famous enough that he’s impossible to ignore.
Now, do I believe that Donald Trump is really a Democratic plant? It’s tempting to say that I’m just raising questions about the Donald in the same spirit that he is about the president. But I’d put it this way: This conspiracy theory requires as big a suspension of disbelief as does contemplating President Donald Trump.
Politico’s Ben Smith brings the kicker to the whole story. Trump made a big show Monday of releasing his own birth certificate in an effort to push the “issue.” One problem: He didn’t release a legally valid birth certificate, which would have the New York City Department of Health’s seal and the signature of the city registrar. Smith adds, tongue happily in cheek:
Trump’s mother, it should be noted, was born in Scotland, which is not part of the United States. His plane is registered in the Bahamas, also a foreign country. This fact pattern — along with the wave of new questions surrounding what he claims is a birth certificate — raises serious doubts about his eligibility to serve as President of the United States.
Hmmm, makes you wonder…
By: Robert Schlesinger, U. S. News and World Report, March 29, 2011
Public Alert: What If We’re Not Broke?
“We’re broke.”
You can practically break a search engine if you start looking around the Internet for those words. They’re used repeatedly with reference to our local, state and federal governments, almost always to make a case for slashing programs – and, lately, to go after public-employee unions. The phrase is designed to create a sense of crisis that justifies rapid and radical actions before citizens have a chance to debate the consequences.
Just one problem: We’re not broke. Yes, nearly all levels of government face fiscal problems because of the economic downturn. But there is no crisis. There are many different paths open to fixing public budgets. And we will come up with wiser and more sustainable solutions if we approach fiscal problems calmly, realizing that we’re still a very rich country and that the wealthiest among us are doing exceptionally well.
Consider two of the most prominent we’re-brokers, House Speaker John Boehner and Wisconsin Gov. Scott Walker.
“We’re broke, broke going on bankrupt,” Boehner said in a Feb. 28 Nashville speech. For Boehner, this “fact” justifies the $61 billion in domestic spending cuts House Republicans passed (cuts that would have a negligible impact on the long-term deficit). Boehner’s GOP colleagues want reductions in Head Start, student loans and scores of other programs voters like, and the only way to sell them is to cry catastrophe.
Walker, of course, used the “we’re broke” rationale to justify his attack on public-worker collective bargaining rights. Yet the state’s supposedly “broke” status did not stop him from approving tax cuts before he began his war on unions and proposed all manner of budget cuts, including deep reductions in aid to public schools.
In both cases, the fiscal issues are just an excuse for ideologically driven policies to lower taxes on well-off people and business while reducing government programs. Yet only occasionally do journalists step back to ask: Are these guys telling the truth?
The admirable Web site PolitiFact.com examined Walker’s claim in detail and concluded flatly it was “false.”
“Experts agree the state faces financial challenges in the form of deficits,” PolitiFact wrote. “But they also agree the state isn’t broke. Employees and bills are being paid. Services are continuing to be performed. Revenue continues to roll in. A variety of tools – taxes, layoffs, spending cuts, debt shifting – is available to make ends meet. Walker has promised not to increase taxes. That takes one tool off the table.”
And that’s the whole point.
Bloomberg News looked at Boehner’s statement and declared simply: “It’s wrong.” As Bloomberg’s David J. Lynch wrote: “The U.S. today is able to borrow at historically low interest rates, paying 0.68 percent on a two-year note that it had to offer at 5.1 percent before the financial crisis began in 2007. Financial products that pay off if Uncle Sam defaults aren’t attracting unusual investor demand. And tax revenue as a percentage of the economy is at a 60-year low, meaning if the government needs to raise cash and can summon the political will, it could do so.”
Precisely. A phony metaphor is being used to hijack the nation’s political conversation and skew public policies to benefit better-off Americans and hurt most others.
We have an 8.9 percent unemployment rate, yet further measures to spur job creation are off the table. We’re broke, you see. We have a $15 trillion economy, yet we pretend to be an impoverished nation with no room for public investments in our future or efforts to ease the pain of a deep recession on those Americans who didn’t profit from it or cause it in the first place.
As Sen. Al Franken (D-Minn.) pointed out in a little-noticed but powerful speech on the economy in December, “during the past 20 years, 56 percent of all income growth went to the top 1 percent of households. Even more unbelievably, a third of all income growth went to just the top one-tenth of 1 percent.” Some people are definitely not broke, yet we can’t even think about raising their taxes.
By contrast, Franken noted that “when you adjust for inflation, the median household income actually declined over the last decade.” Many of those folks are going broke, yet because “we’re broke,” we’re told we can’t possibly help them.
Give Boehner, Walker and their allies full credit for diverting our attention with an arresting metaphor. The rest of us are dupes if we fall for it.
By: E. J. Dionne, Op-Ed Columnist, The Washington Post, March 14, 2011
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