“We Are Not A Deadbeat Nation”: Do Your Duty Congress, Or We’ll All Suffer The Consequences
By the time the president was making his case for the fourth time, the responses started getting a little repetitious, but Obama’s line didn’t change: we’ve already made enormous progress on debt reduction, he’s willing to do more, but a hostage strategy based on the debt ceiling isn’t acceptable.
In fact, the president spent a fair amount of time trying to explain to the public what some reporters occasionally overlook:
“The debt ceiling is not a question of authorizing more spending. Raising the debt ceiling does not authorize more spending. It simply allows the country to pay for spending that Congress has already committed to.
“These are bills that have already been racked up, and we need to pay them. So while I’m willing to compromise and find common ground over how to reduce our deficits, America cannot afford another debate with this Congress about whether or not they should pay the bills they’ve already racked up. […]
“So to even entertain the idea of this happening, of the United States of America not paying its bills, is irresponsible. It’s absurd…. And Republicans in Congress have two choices here: They can act responsibly and pay America’s bills or they can act irresponsibly and put America through another economic crisis. But they will not collect a ransom in exchange for not crashing the American economy. The financial well-being of the American people is not leverage to be used. The full faith and credit of the United States of America is not a bargaining chip.”
It doesn’t sound like he’s ready to cave. On the contrary, it sounds like the president is issuing a not-so-subtle challenge to congressional Republicans: do your duty or we’ll all suffer the consequences.
The president went on to say:
“[T]he issue here is whether or not America pays its bills. We are not a deadbeat nation. And so there’s a very simple solution to this. Congress authorizes us to pay our bills.
“Now if the House and the Senate want to give me the authority so that they don’t have to take these tough votes, if they want to put the responsibility on me to raise the debt ceiling, I’m happy to take it. Mitch McConnell, the Republican leader in the Senate, had a proposal like that last year, and I’m happy to accept it.
“But if they want to keep this responsibility, then they need to go ahead and get it done. And you know, there are no magic tricks here. There are no loopholes. There are no, you know, easy outs. This is a matter of Congress authorizes spending. They order me to spend. They tell me: You need to fund our Defense Department at such-and-such a level. You need to send Social Security checks. You need to make sure that you are paying to care for our veterans.
“They lay all this out for me, and — because they have the spending power. And so I am required by law to go ahead and pay these bills.
“Separately, they also have to authorize a raising of the debt ceiling in order to make sure that those bills are paid. And so what Congress can’t do is tell me to spend X and then say, but we’re not going to give you the authority to go ahead and pay the bills.”
Obama added that he’s ready to negotiate on debt reduction, and he’s even open to entitlement changes, but he doesn’t intend to reward Congress for doing what it must do anyway.
What’s more, of particular interest was the president highlighting Republicans’ philosophical goals, which have less to do with debt reduction, and more to do with undermining public institutions.
“[I]t seems as if what’s motivating and propelling at this point some of the House Republicans is more than simply deficit reduction. They have a particular vision about what government should and should not do. So they are suspicious about government’s commitments, for example, to make sure that seniors have decent health care as they get older. They have suspicions about Social Security. They have suspicions about whether government should make sure that kids in poverty are getting enough to eat or whether we should be spending money on medical research. So they’ve got a particular view of what government should do and should be.
“And that view was rejected by the American people when it was debated during the presidential campaign. I think every poll that’s out there indicates that the American people actually think our commitment to Medicare or to education is really important, and that’s something that we should look at as a last resort in terms of reducing the deficit, and it makes a lot more sense for us to close, for example, corporate loopholes before we go to putting a bigger burden on students or seniors.”
I’m glad Obama reminded the political world of this basic truth; I get the sense folks sometimes forget what the driving motivations are behind many of our ongoing partisan fights.
By: Steve Benen, The Maddow Blog, January 14, 2013
“Defense Hawks Swoop”: House Republicans Pushing Back Strongly Against John Boehner On Defense Cuts
John Boehner should probably stop doing interviews.
His reported talk with the Wall Street Journal‘s Stephen Moore that was published Monday under the provocative title “The Education of John Boehner” (an illusion, I am confident, to William Greider’s famous “The Education of David Stockman” piece in late 1981 that nearly got Stockman fired as Reagan’s budget director) is continuing to cause him problems. Intended, presumably, to convey a sadder-but-wiser-and-tougher sense of his negotiating posture on fiscal issues after the “fiscal cliff” deal, the story got lots of attention for Boehner’s assertion that “the tax issue is resolved,” and some for his depiction of the stark differences between himself and the president on every basic fiscal and economic issue.
But the part of the story that’s biting him in the butt right now involves the spending sequestration that was recently delayed for two months, and that had been widely considered a leverage point for the White House with Republicans, given their frantic desire to spare the Pentagon any cuts. The Hill‘s Russell Berman and Jeremy Herb explain:
In his interview with The Wall Street Journal, Boehner said that during the late stages of the fiscal-cliff negotiations, it was the White House — and not Republican leaders — that demanded a delay in the $109 billion in scheduled 2013 cuts evenly split between defense and domestic discretionary programs. Senate Republican Leader Mitch McConnell (Ky.) and Vice President Biden ultimately agreed to push the sequester back by two months, partially offsetting it with other spending cuts and leaving $85 billion in remaining 2013 cuts in place.
The Speaker suggested the sequester was a stronger leverage point for Republicans than the upcoming deadline to raise the debt ceiling, for which he is insisting on spending cuts and reforms that exceed the amount in new borrowing authority for the Treasury. Therefore, the willingness of Republicans to allow the sequester to take effect is “as much leverage as we’re going to get,” Boehner told the Journal.
Negotiating 101 tells you that you don’t make that kind of assertion unless you’ve got your ducks in a row and know you won’t be undercut by the people you claim to be speaking for. It seems Boehner did not do any of those things:
House Republican defense hawks are pushing back strongly against Speaker John Boehner’s (R-Ohio) claim that he has GOP support to allow steep automatic budget cuts to take effect if President Obama does not agree to replace them with other reductions….
Not so fast, two defense-minded House Republicans told The Hill.
“I don’t support that,” said Rep. Duncan Hunter (R-Calif.), a member of the Armed Services Committee whose district includes one of the nation’s largest military installations. “You get into dangerous territory when you talk about using national security as a bargaining chip with the president…”
One defense-minded Republican lawmaker said Boehner’s position would amount to a broken promise to his conference.
“In order to get the Republican Conference to pass the debt-limit increase last time, he promised them sequestration would not go in place,” the Republican House member said, speaking on the condition of anonymity. “To be using sequestration and these defense cuts in the next debt-limit talks certainly is pretty bad déjà vu for the Republican Conference.”
So all Boehner really accomplished in his boast to Stephen Moore was supplying further evidence that he had it backwards: Obama has the leverage on the defense sequester, and Boehner is just blustering.
You know, there’s a natural tendency to think that people who have risen to the top of any profession are reasonably bright, and are advised by dazzlingly bright folk who truly earn their bloated salaries as strategic wizards. Time and again, that turns out not to be so true.
BY: Ed Kilgore, Contributing Writer, Washington Monthly Political Animal, January 10, 2013
“Calling The Great Turtle’s Bluff”: President Obama Should Raise The Debt Ceiling Himself
The budget deal that just averted the supposed fiscal cliff was only a warm up. The next fiscal cliff is the $110 billion in automatic budget cuts (sequesters) that last week’s budget deal deferred only until March. But, as long as we are using topographic metaphors, this is less a cliff than a bluff.
On the Sunday talk shows, Republican leaders were full of bravado and swagger. Representative Matt Salmon of Arizona, on CBS “Face the Nation” said it was about time “for another government shutdown.”
Senate Minority Leader Mitch McConnell, speaking with ABC’s George Stephanopoulos, ruled out any further tax increases, declaring that “the tax issue is finished, over, completed.” He insisted, “Now it’s time to pivot and turn to the real issue, which is our spending addiction.”
But is spending really the problem? For most the postwar era, federal tax revenues hovered around 19 percent of GDP, and spending a bit more than that. But for the four years since the financial collapse, federal revenues have been under 16 percent of GDP, thanks to the Bush tax cuts and the weak economy. It’s true that spending is up—it peaked at 25.2 percent of GDP in FY 2009, mainly because of the stimulus. But if it were not for the stimulus, unemployment would be even higher and growth even lower.
The point is that none of these fiscal issues caused the financial collapse, nor are they retarding the recovery. Were Congress to reduce the budget deficit, it would weaken, not strengthen the recovery. That is the real danger of the so-called fiscal cliff.
Spending relative to GDP was as high as 23.5 percent in the Reagan years, a shade above its projected level for this year. So there is no “addiction to spending.” If a free society wants to tax itself more to pay for decent retirement and health benefits, that is a political choice. Even with the slight tax increase of last week’s budget deal, limited to the top one percent, we still have the lowest tax rates of any wealthy country.
Seemingly, the Republicans hold a much stronger hand in the next round of budget talks: If Congress does nothing, the automatic cuts of the sequester take hold.
But Republicans have been blustering on taxes and spending for years. They were never going to raise taxes (Sorry, Grover), but when Obama decided to hang tough they turned around and voted to hike taxes on the richest one percent.
Obama needs to call McConnell’s bluff. On the issue of the debt ceiling, he can invoke his authority under the Fourteenth Amendment, which provides that the U.S. government’s debts must be honored. He’d get wide backing.
On the sequester, Obama can keep Social Security and Medicare cuts off the table. There is more than one way to balance accounts going forward. One way is to raise the ceiling on incomes subject to payroll taxes. That would be a lot more popular than cutting benefits.
And does McConnell really want the sequester to bite, with its $60 billion in Pentagon cuts? In the great budget showdowns of the mid-1990s with Newt Gingrich, Bill Clinton got the GOP to blink first.
If Clinton could achieve that with the Great Newt, Obama can do no less with the Great Turtle.
By: Robert Kuttner, The American Prospect, January 7, 2013
“It’s Really Not That Complicated”: Republicans Are At The Intersection Of Recklessness And Stupidity
Sen. John Cornyn (R-Texas) has an op-ed in the Houston Chronicle today, explaining why he believes it’s responsible to hold the debt ceiling hostage until President Obama “puts forward a plan” that makes Republicans happy. The piece is filled with errors of fact and judgment, but there was one truly bizarre claim that stood out for me.
“The coming deadlines will be the next flashpoints in our ongoing fight to bring fiscal sanity to Washington,” the Texas Republican wrote. “It may be necessary to partially shut down the government in order to secure the long-term fiscal well being of our country.”
Just at a surface level, this is ridiculous — to prevent possible trouble in the future, Cornyn intends to cause deliberate trouble now? But even putting that aside, I’m not sure if the senator understands the nature of the controversy. Failing to raise the debt limit — that is, choosing not to pay the bills for money that’s already been spent — doesn’t just “partially shut down the government,” it pushes the nation into default and trashes the full faith and credit of the United States.
Does Cornyn, a member of the Finance and Budget committees, not understand this? Just as importantly, is Senate Minority Leader Mitch McConnell (R-Ky.) equally confused?
“By demanding the power to raise the debt limit whenever he wants by as much as he wants, [President Obama] showed what he’s really after is assuming unprecedented power to spend taxpayer dollars without any limit,” McConnell argued on the Senate floor.
At the risk of being impolite, McConnell’s comments are plainly dumb. As a policy matter, it’s just gibberish, and the fact that the Senate Minority Leader doesn’t seem to know what the debt ceiling even is, after already having threatened default in 2011 and planning an identical scheme in 2013, raises serious questions about how policymakers can expect to resolve a problem they don’t seem to understand at a basic level.
For the record, Congress, by constitutional mandate, has the power of the purse. Unless you’re Ronald Reagan illegally selling weapons to Iran to finance a secret and illegal war in Nicaragua, the executive branch can’t spend money that hasn’t already been authorized by the legislative branch.
If the president had the authority to raise the debt ceiling on his or her own, it would not give the White House the authority to “spend taxpayer dollars without any limit,” since any administration would still be dependent on Congress for expenditures. The debt limit has nothing to do with this — spending authority would be unchanged no matter which branch had the power over raising the limit, and whether the ceiling existed or not.
It’s really not that complicated. Congress approves federal spending, the executive branch follows through accordingly. When the legislative branch spends more than it takes in, the executive branch has to borrow the difference.
In the 1930s, Congress came up with the debt ceiling, mandating the White House to get permission to borrow the money that Congress has already spent. If McConnell, Cornyn, and their hostage-taking friends refuse to raise the ceiling, the administration can’t pay the nation’s bills. It’s that simple.
Either GOP lawmakers like McConnell and Cornyn haven’t yet grasped these basic details, or they’re cynically hoping the public is easily misled by bogus rhetoric. Either way, there’s little hope of a sensible public debate if Senate Republican leaders repeat nonsense about a looming national crisis.
By: Steve Benen, The Maddow Blog, January 4, 2013
“Lessons Not Learned”: Republicans Who Put Principle Above Country
A lot of the time, politics is about picking the least worst option. Well, the “fiscal cliff” deal jointly crafted by Vice President Biden and Senate Minority Leader Mitch McConnell (R-Ky.) was the least worst option, and those who voted against it should not hide behind any phony commitment to principle. This deal or nothing were the two options left after weeks of failed negotiations. Nothing else was possible last night. And while nothing about the deal makes America stronger, the absence of an agreement would make us weaker.
The GOP needs to be the party of low taxes and smaller government. This deal produces the opposite of that. It does nothing to slow spending, reduce the debt or diminish dependency. All it did was avoid a financial shot to the head for millions of U.S. taxpayers.
Of course it is easy to oppose the deal when you don’t consider context, the alternatives and the consequences of doing nothing. It is convenient to believe that, if the GOP had let us go over the cliff, it would have been so bad for so many taxpayers and for the economy that the president and the Democrats in Congress would have agreed to a better deal, including spending reform. In other words, taxpayers were being held hostage and if we would have let them endure a little torture, we could have gotten Obama and the Democrats to cave in to our will.
What a bunch of baloney. The Republicans who voted “no” hid behind the courage of those who recognized that the McConnell-Biden deal was better — at this time — than the consequences of doing nothing.
Obviously, America’s future depends on our ability to rein in spending. Fights over our spending, including the debt-ceiling debate, will be critical. But no Republicans should boast of their opposition to the McConnell-Biden deal and consider themselves more philosophically pure or more courageous than their colleagues who had to vote for the bill. They are the opposite.I hope party leaders will band together and punish any Republican or Republican organization that tries to use this vote against those who voted for it. Nobody should be vulnerable in a future primary because they voted “yes” last night. If anything, the lesson learned for Republicans should be how hard it’s going to be to get our financial house in order and slow the quickening decline of America.
By: Ed Rogers, The Insiders, The Washington Post, January 2, 2012
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