“The Sorry Spectacle Continues”: Polarized Washington Ignores Long-Term Issues At Its Peril
Scandalfest continues. Official Washington is still flitting from one minor controversy to another, with the news media breathlessly reporting the latest leaked email or unsubstantiated accusation. Clearly, the chattering classes have declared the jobs crisis ended and the economic recovery complete.
While the Obama administration hasn’t popped open champagne bottles to celebrate, the air of silliness that hangs over the Beltway is a reminder that the worst is over. After all, the stock market is soaring. Consumer confidence is climbing.
The latest national unemployment number is down to 7.5 percent, the lowest level since December 2007, when the economy started its steep descent. Indeed, the sustained economic uptick may have a direct tie-in to Washington’s current obsession with less consequential matters: The economy is strong enough to have persuaded Republicans to stop blasting President Barack Obama over joblessness, so they’ve had to find other issues with which to batter him.
Here’s an update from outside the Beltway Bubble: The jobs crisis is not over. Average Americans are still struggling through an ugly economic transformation — a structural change decades in the making that jumped into overdrive with the Great Recession. Millions of Americans of working age remain unemployed, while others patch together two or three part-time jobs to keep food on the table. Still others have found full-time jobs but at far less pay than they used to earn.
A recent Quinnipiac poll provides a clear look into the minds of voters, who have little interest in the imbroglios of the moment. Rightly, 44 percent believe the revelations about the Internal Revenue Service, which singled out conservative organizations for unfair screening, as most important among the current controversies. Only 24 percent cited the deaths of four Americans at a diplomatic outpost in Benghazi, despite the GOP’s obsession with it. Far fewer, just 14 percent, listed the Justice Department’s scrutiny of reporters.
But here’s the news you may have missed: An overwhelming 73 percent said that boosting the economy and creating jobs is more important than any of the other three issues. If politicians were as poll-obsessed as they are rumored to be, they’d at least pretend to be devoting most of their time to helping middle-class Americans get back into stable jobs with good pay.
The jobs crisis has been decades in the making, an economic restructuring fueled by globalization and technology. Think about it: Those Bangladeshi textile workers killed in an April building collapse were doing work once done in the United States. No matter how many affluent Americans protest the conditions and boycott the designers who contributed to the disaster, those jobs are not coming back to these shores. Manufacturers will continue to pursue cheap labor.
As a result, the jobs that once guaranteed good wages and stable futures to generations of Americans without college degrees have all but disappeared. That transformation, which started in the 1970s, has contributed to the wage gap, the ever-widening rift between the haves and have-nots. The average American worker has been losing economic ground for decades.
Politicians ignore that growing gap at their peril. The notion of an America where everybody has an equal shot has always been more myth than reality, but there was once a time when it was not so difficult for young adults to imagine a more prosperous future than their parents had. That is no longer a likely scenario.
That’s a very difficult problem to solve, which helps explain why politicians don’t like to discuss it. It calls for a multigenerational response, the sort of bipartisan approach that is usually reserved for battles against foreign enemies.
But Washington is stuck in a period of deepening polarization, incapable, it seems, of even agreeing on the causes of our economic woes. Democrats, at least, have a language for discussing widening income inequality. Republicans haven’t yet come to terms with its existence. So the sorry spectacle continues.
By: Cynthia Tucker, The National Memo, June 6, 2013
“The Farce That Is Darrell Issa”: Just Another Symbol Of Today’s GOP
The only thing that makes Rep. Darrell Issa remotely qualified to chair the House Oversight Committee is his personal familiarity with the investigative process – on the receiving end. The man Republican House Speaker John Boehner put in charge of investigating government wrongdoing was himself indicted for stealing a car, accused of stealing at least one other car, arrested for carrying a concealed weapon, and twice suspected of insurance fraud – and once extensively investigated by authorities for arson, because his former business associates accused him, on the record, of burning down a building to collect the insurance payout.
Democrats love to hate the silly, camera-chasing Issa, who came to power in 2011 promising to put the White House under generalized investigation. But now even some Republicans are happy to criticize Issa too. It’s easy for them to denounce his calling Jay Carney a “paid liar,” as well as his evidence-free claim that the IRS mess was directed from Washington, D.C., while they continue to participate in smearing the White House with non-scandals themselves, nonetheless.
Issa’s extremist idiocy lets “reasonable” Republicans denounce him and/or his rhetoric, while they continue their own ethically, intellectually and politically blinkered crusades against President Obama. Sure, Sen. John McCain says it was wrong to call Carney a “paid liar” – but also on MSNBC’s “Morning Joe,” he compared the IRS mess to Ronald Reagan’s deadly Iran-Contra scandal. Um, no.
Scandal-drunk Sen. Lindsey Graham says Issa went too far when he said the IRS agents who keyword-targeted Tea Party groups “were directly being ordered from Washington.” But he continued to hype the IRS story. “At the end of the day, the IRS scandal really is scary,” he told Fox’s Brian Kilmeade. “How would you like your own government to turn on you?” Is that really what happened, Lindsey Graham? And if so, it happened most brutally to a Democratic group, Emerge America, which had its tax-exempt status revoked.
Of course, McCain and Graham are also the guys who brought us the ultimate non-scandal: Benghazi. Issa’s idiocy lets them retain their role as “statesmen,” gets them invited back on the Sunday shows, and gives the media an excuse to consider them arbiters of what’s politically acceptable – while they’re themselves on the right fringe. Of course it’s guys like Issa who constantly move that standard of what’s politically acceptable to the right.
Honestly, when David Plouffe started raising Issa’s past on ABC’s “This Week,” and then on Twitter, part of me winced. But that’s because I didn’t completely remember Ryan Lizza’s amazing Issa profile in the New Yorker – which was respectful while also documenting Issa’s troubling history with law enforcement – as well as my own life in California during the surreal 2003 recall of Gray Davis (another example of GOP nullification of election results, by any means necessary, usually big money).
Issa financed the recall, and hoped to run for governor himself, but then the Los Angeles Times and other California papers began reporting on his earlier legal troubles. There was particular attention to his indictment for grand theft when he reported his Mercedes stolen after his brother William sold it; William had earlier obtained the right to do so from his brother. The two men had different stories for a while, and authorities believed they’d conspired to sell the car, report a “theft” and collect insurance on it.
(I personally think the arson investigation was even more damning: An Issa colleague gave investigators vivid detail that indicated his car-alarm factory had been intentionally torched, after Issa increased his insurance from $100,000 to $462,000. “Quite frankly,” Joey Adkins told authorities, “I feel the man set the fire.” But the local fire marshal never determined the fire’s cause.)
In the end, the scrutiny doomed Issa’s chance to run for governor – but his wealth funded the successful recall of Davis. Sure, Issa could continue to hold his House seat in his conservative San Diego district, but a guy as ethically compromised (and as blinkered ideologically) as Issa could never win a statewide election in California – let alone a national one. So he tearfully stepped aside for Arnold Schwarzenegger.
So that’s the guy who’s heading up the House GOP’s investigation into alleged Obama White House “scandals.”
Sen. Chuck Schumer got a lot of attention Monday for telling “Meet the Press’s” David Gregory that Issa’s overreach is setting up a GOP loss in 2014 – just like the impeachment witch hunt against President Clinton set up his party’s historic gain of seats in the 1998 midterms. I hope Schumer’s right. But I find myself taking little comfort even in that uncertain outcome.
Democrats, including myself, like to declare that impeachment didn’t resonate with the American people, who gave Clinton ever-higher approval ratings as the witch hunt continued. And yes, Clinton’s party won seats in the ’98 midterm. But impeachment, and the myriad baseless investigations that preceded it, from Whitewater to Travelgate to alleged Chinese fundraising scandals, preoccupied both the White House and the media, to the detriment of Clinton’s agenda, particularly in his second term. They certainly didn’t help Vice President Al Gore in his campaign to win the presidency.
While I’ve always rejected the claims of some anti-Clinton centrist Democrats that Clinton’s philandering cost Gore the election, there was at least some polling that suggested it hurt Gore with suburban women. Certainly the cloud of scandal – and the stalling of the Clinton-Gore agenda – couldn’t have helped Gore, who won the popular vote and by reliable accounts the electoral vote in a race that shouldn’t have even been as close as it was, given the strength of the economy and the deficits of George W. Bush. I would argue that Clinton’s experience proves GOP scandal-mongering works – and once again, the media let the party get away with it.
I’m happy even some mainstream media pundits are warning that Issa’s overreach could hurt the GOP in 2014. And yet that new rhetorical twist puts the focus on horse race politics, where all of journalism appears most comfortable today. Issa’s extremism may or may not hurt his party at the polls. All I know is it should be hurting him, and the GOP, more with the American people, when they think about what they want in their leaders.
By: Joan Walsh, Editor at Large, Salon, June 4, 2013
“Bob Woodward’s Credibility Is In Tatters”: From Impartial Reporter To Conservative Pundit
On Fox News Monday night, famed Washington Post reporter Bob Woodward and host Bill O’Reilly zeroed in on the latest twist in Washington scandalmania — why the White House is refusing to answer questions about the 157 times former IRS commission Doug Schulman allegedly visited the White House, a closeness that raises questions about presidential involvement in the agency’s controversial targeting of Tea Party tax-exempt groups.
“This fiction that somehow [the IRS is] totally an independent agency is absurd,” Woodward, who broke the Watergate scandal, said. “You say they aren’t answering this question about the 157 visits by the IRS commissioner. They should.”
“President Obama could easily come out through his spokesperson and say this is where Mr. Schulman was. And here are the dates. Here is who he met with,” O’Reilly said. “The fact that the President doesn’t do it, should raise the curiosity of every reporter, Mr. Woodward, every reporter. Yet, as I said, the major network news on television ignored the story last week in its totality. It’s amazing.”
This forces us to ask the uncomfortable question of whether O’Reilly and Woodward have access to Google. Because if they did, they would have the answers to all of these questions, and they may even find a statement from the president’s spokesperson that he is supposedly refusing to give.
“The IRS commissioner, in carrying out his duties, would of course have many reasons to have an appointment to visit the White House,” White House spokesperson Eric Schultz said.
That’s a bit vaguer than what O’Reilly and Woodward are looking for, but the White House doesn’t really have to say any more, considering that all the specifics are already online, available to anyone who looks for them.
The story of the 157 visits originated with the Daily Caller, based on a (sloppy) inspection of White House visitor logs. But as the Atlantic’s Garance Franke-Ruta reported, parsing those very same visitor logs a bit more closely, it turns out that while Schulman — a Bush appointee — was cleared to visit the White House 157 times, he appears to have actually visited only 11 times.
The vast majority of the cleared visits were related to the implementation of Obamacare, in which the IRS plays a key role, and include regularly scheduled weekly meetings with administration officials on the ongoing work. Meanwhile, many people seem to be conflating the presidential mansion itself with other executive office buildings that are organizationally under the “Executive Office of the President ” — all colloquially referred to as “The White House.” They’re all included in the Secret Services’ visitors logs, but it turns out Schulman was rarely cleared to visit the actual White House, more often having permission to go to the Executive Office Building.
Some Googling might also reveal a Politico story, which also cast doubt on the Daily Caller’s scoop, or plenty of others.
You can see where Schulman went, whom he met with and when — all of these mysterious questions the White House refuses to answer — here.
We expect it from O’Reilly, but it’s a bit disappointing from Woodward, who should know better. Still, he’s seemingly been making a subtle drift from impartial reporter to conservative pundit in recent years.
By: Alex Seitz-Wald, Salon, June 4, 2013
“A Failure To Hold Congress Accountable”: Economic Policy Is Largely Being Driven By Obstructionism, Not Economic Advisers
President Obama is reportedly planning to nominate economist Jason Furman to replace Alan Krueger as the head of the Council of Economic Advisers. Like Krueger and, for that matter, Austan Goolsbee and Christina Romer who previously served this administration in the same capacity, Furman boasts an impressive resume, with a Harvard economics doctorate as well as stints at the Brooking Institution, the Center on Budget and Policy Priorities (CBPP), and the CEA under President Clinton, among others. If you’re still of the incorrect belief that tax cuts largely pay for themselves (looking at you, Senate Minority Leader Mitch McConnell), do yourself a favor and read his CBPP report explaining the mechanics and empirics of “dynamic scoring” (pdf) and why invoking it as a talisman doesn’t mean one can claim anything one finds politically expedient.
The Beltway coverage of this news is overly focused on the inside baseball politics between the CEA and the National Economic Council, where Furman has been serving as Deputy Director since January 2009. But it’s important to step back and remember that economic policy in recent years has been principally driven not by well-qualified economists with the CEA, NEC, or elsewhere in the executive branch, but instead by conservative congressional obstructionism. Jason Furman’s appointment to the CEA will not alter the troubling reality that the United States is on an autopilot course of premature, excessive austerity and intentionally poorly designed sequestration spending cuts. But even if the ghost of conservative saint Milton Friedman rose up and warned the GOP against such austerity, today’s conservatives in Congress would declare him an apostate and continue their destructive course.
Consequently, the U.S. economy will almost certainly continue muddling through an adverse equilibrium of anemic growth, severely depressed output, massive underemployment, large cyclical budget deficits, subdued price inflation, widespread real wage deflation and low interest rates. It’s really quite simple: a steep aggregate demand shortfall continues to keep the economy’s performance well below potential, and the Federal Reserve has been and will continue to be incapable of fully ameliorating this shortfall so long as contractionary fiscal policy is being pursued. (See this paper for a thorough treatment.)
In short, the intellectual debate over austerity vs. stimulus has been totally decoupled from the policy debate and, more importantly, policy outcomes in Washington—despite having been resolved in a virtual TKO by those opposed to foisting austerity on depressed economies. The United States doesn’t face, or, perhaps more accurately, no longer faces a deficit of economists capable of opening up an intermediate macroeconomics textbook and relearning liquidity trap/depression economics. But the U.S. Congress faces a depressing deficit of members who seem to care about empiricism or evidence-based policy, never mind their unemployed constituents.
My colleague Josh Bivens and I have chronicled the ways the GOP has routinely and frequently obstructed economic recovery since 2009—much of which should inform any debate this summer regarding much needed reform of the Senate’s filibuster rules, as well as the inevitable political fight over the debt ceiling. Conservatives, particularly the Tea Party caucus, are to blame for exploiting every piece of leverage available (including the nation’s credit worthiness) to extract premature spending cuts, filibustering just about anything that would boost aggregate demand, watering down the Recovery Act, hamstringing monetary policy and demanding counterproductive legislative ‘pay fors’—stipulated to never, ever include revenue increases. The frequently espoused pox-on-both houses punditry is not just off-base, but is also somewhat complicit in this sad state of affairs.
Does it matter who advises the president? Absolutely. But the distressing state of the U.S. economy is, at root, a failure of our representative democracy and institutions to hold Congress accountable for its decisions preventing economic recovery, not a failure of technical advice given to the president. Realistically, the Constitution and budgetary process outlook afford the administration scant leverage to force more deficit-financed government spending, the most effective policy lever for digging out of this Lesser Depression. Under this backdrop, the United States needs more than qualified economic advisers to the president—a majority of representatives and (barring meaningful filibuster reform) super-majority of senators who heed evidence, as well as a press corps holding them accountable, jump to mind.
By: Andrew Fieldhouse, Economic Policy Institute, May 29, 2013
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