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Different Congress, Same Crap: Get Ready for a GOP Rerun

Bob Herbert-Op Ed Columnist, NYT

You just can’t close the door on this crowd. The party that brought us the worst economy since the Great Depression, that led us into Iraq and the worst foreign policy disaster in American history, that would like to take a hammer to Social Security and a chisel to Medicare, is back in control of the House of Representatives with the expressed mission of undermining all things Obama.
Once we had Dick Cheney telling us that Saddam Hussein had weapons of mass destruction and belligerently asserting that deficits don’t matter. We had Phil Gramm, Enron’s favorite senator and John McCain’s economic guru, blithely assuring us in 2008 that we were suffering from a “mental recession.” (Mr. Gramm was some piece of work. A champion of deregulation, he was disdainful of ordinary people. “We’re the only nation in the world,” he once said, “where all of our poor people are fat.”)
Maybe the voters missed the entertainment value of the hard-hearted, compulsively destructive G.O.P. headliners. Maybe they viewed them the way audiences saw the larger-than-life villains in old-time melodramas. It must be something like that because it’s awfully hard to miss the actual policies of a gang that almost wrecked the country.

In any event, the G.O.P. has taken its place once again as the House majority and is vowing to do what it does best, which is make somebody miserable — in this case, President Obama. Representative Darrell Issa, the California Republican who is now chairman of the Oversight and Government Reform Committee, said recently on the Rush Limbaugh program that Mr. Obama was “one of the most corrupt presidents in modern times.” He backed off a little on Sunday, saying that what he really thinks is that Mr. Obama is presiding over “one of the most corrupt administrations.”

This is the attitude of a man who has the power of subpoena and plans to conduct hundreds of hearings into the administration’s activities.

The mantra for Mr. Issa and the rest of the newly empowered Republicans in the House, including the new Budget Committee chairman, Paul Ryan of Wisconsin, is to cut spending and shrink government. But what’s really coming are patented G.O.P. efforts to spread misery beyond Mr. Obama and the Democrats to ordinary Americans struggling in what are still very difficult times.

It was ever thus. The fundamental mission of the G.O.P. is to shovel ever more money to those who are already rich. That’s why you got all that disgracefully phony rhetoric from Republicans about attacking budget deficits and embracing austerity while at the same time they were fighting like mad people to pile up the better part of a trillion dollars in new debt by extending the Bush tax cuts.

This is a party that has mastered the art of taking from the poor and the middle class and giving to the rich. We should at least be clear about this and stop being repeatedly hoodwinked — like Charlie Brown trying to kick Lucy’s football — by G.O.P. claims of fiscal responsibility.

There’s a reason the G.O.P. reveres Ronald Reagan and it’s not because of his fiscal probity. As Garry Wills wrote in “Reagan’s America”:

“Reagan nearly tripled the deficit in his eight years, and never made a realistic proposal for cutting it. As the biographer Lou Cannon noted, it was unfair for critics to say that Reagan was trying to balance the budget on the backs of the poor, since ‘he never seriously attempted to balance the budget at all.’ ”

We’ll see and hear a lot of populist foolishness from the Republicans as 2011 and 2012 unfold, but their underlying motivation is always the same. They are about making the rich richer. Thus it was not at all surprising to read on Politico that the new head of the House Energy and Commerce Committee, Fred Upton of Michigan, had hired a former big-time lobbyist for the hospital and pharmaceuticals industries to oversee health care issues.

I remember President Bush going on television in September 2008, looking almost dazed as he said to the American people, “Our entire economy is in danger.”

Have we forgotten already who put us in such grave peril? Republicans benefit from the fact that memories are short and statutes of limitations shorter. It was the Republican leader in the House, Tom DeLay, who insisted against all reason and all the evidence of history that “nothing is more important in the face of war than cutting taxes.”

But that’s all water under the bridge. The Republicans are back in control of the House, ready to run interference for the rich as recklessly and belligerently as ever.

By: BOB HERBERT-Op-Ed Columnist, New York Times-Published January 3, 2011

January 6, 2011 Posted by | Politics, Uncategorized | , , , , , , , , , | Leave a comment

Charles Krauthammer Is the Fraud

Charles Krauthammer says that Obama has conned Republicans into agreeing to a second stimulus even bigger than the first. Democrats are too stupid to see this (and Republicans are even more stupid, presumably, since they are the victims).

Barack Obama won the great tax-cut showdown of 2010 – and House Democrats don’t have a clue that he did. In the deal struck this week, the president negotiated the biggest stimulus in American history, larger than his $814 billion 2009 stimulus package. It will pump a trillion borrowed Chinese dollars into the U.S. economy over the next two years – which just happen to be the two years of the run-up to the next presidential election. This is a defeat?

He’s right about the Democrats’ stupidity, but this is not Krauthammer at his most lucid.

Yes, Democrats are fools to tear their hair out over this deal, which gives them most of what they wanted: the middle-class tax rates, unemployment benefit extension, payroll-tax cut, and so on. They compound the idiocy by advertising higher taxes on the rich as their core objective. Forget relieving poverty, widening access to health care, improving opportunities for the disadvantaged. What matters more than any of that is sticking it to “millionaires and billionaires” (two-earner households making more than $250,000). You bet, the Democrats are acting like fools.But this stimulus is not bigger than the first, not even close. Two-thirds of its “cost” is keeping tax rates where they currently are. There is no new stimulus in failing to put taxes up–in forgoing a drastic fiscal tightening that nobody wanted and nobody expected. Unlike Krauthammer, I think further short-term stimulus makes sense, so I welcome the $300 billion (over two years) or so of extra stimulus in the deal. Oppose this if you like, but please don’t call it a bigger stimulus than the first.

In any event, the key question is this: does Krauthammer oppose the deal? Having declared Obama guilty of a massive swindle, and recalling that he is opposed to all of Obama’s sinister purposes, Krauthammer is obliged by his own logic to say what a bad thing the agreement must be. So what exactly did he want to happen? Presumably, raise everybody’s taxes next month, with an especially steep rise for $250,000+ households. Has he previously advocated this policy? Maybe he has, and I missed it; if so, I apologize. But if he agrees it makes sense for now to keep taxes where they are, which has been the Republicans’ defensible position, what is so bad about what just happened? Krauthammer is left opposing it because Obama was in favour. It is not every day that Krauthammer is backed into an absurd and dishonest position by his own logic.

What about the long-term deficit? This deal, if temporary, has little effect on that either way, and could easily be deficit-reducing if it avoids a second dip (as Krauthammer seems to concede it might). Obviously, the long-term deficit remains a huge concern. Tackling that requires prolonged Bowles-Simpson-type efforts that were not on the agenda for this deal. They should have been, but they weren’t. Was that a reason for rejecting the deal and letting taxes rise next month? I think not. Again, if that is the outcome Krauthammer wanted, then all right. But if that is not his position, then he is the fraud.

Read David Brooks instead.

BY: Clive Crook, Senior Editor of The Atlantic-December 11, 2010

December 13, 2010 Posted by | Economy | , , , , , , , , | Leave a comment

Obama’s Silent Majority

Preident Barack Obama

You’d never know it from cable news, but the average liberal Democrat actually likes the job the president is doing

Everyone knows that progressives have been growing increasingly disillusioned with Barack Obama since, well … even before he took office. He’s compromised too much, fought too little, sold out on one big issue after another, and fallen horribly, tragically short of the transformational goals that defined his 2008 campaign.

And now that he’s gone and cut a deal with Mitch McConnell (of all people!) to keep the Bush tax cuts in place for the wealthiest Americans for the next two years (at least), the left’s anger is louder than ever.  No wonder Time’s Mark Halperin says the president’s base is “shattered.” And no wonder the media is filled with speculation about a potential challenge to the president in the 2012 Democratic primaries. Really, has there ever been a president who’s succeeded so thoroughly in taking the very people who put him in office and turning them against him?

It’s a fun topic for cable news and the blogosphere, where liberal commentators and activists routinely brand the president a Judas and threaten to support a primary challenger in 2012. And it’s a fun topic in the “mainstream media,” which takes all of this racket as confirmation that Obama is rapidly losing — or has already lost — his base.

There’s just one problem: The premise on which all of this is based is totally and completely wrong. Liberal commentators and activists and interest group leaders may be seething over Obama, but their rage has not trickled down to the Democratic voters (and, in particular, the Democratic voters who identify themselves as liberals), even though they’ve been venting their grief for the better part of two years.

As I noted earlier this week, Obama’s approval rating among Democrats has held steady at or near the 80 percent level throughout all of the turmoil of 2010. This puts him in as strong a position with his own party’s voters as any modern president has been at this same point in his presidency (with the exception of George W. Bush, whose numbers remained unusually high for well over a year after 9/11). Look closer and you’ll also find that Obama’s approval rating among Democrats is actually highest among those who call themselves liberals — an 83 percent score in  the most recent round of Gallup polling, completed a few days ago. Among moderate Democrats, he clocks in at 75 percent, and among conservative Democrats, 69 percent. Again, these numbers have more or less held steady all year. To the extent Obama has a serious problem with Democrats, then, it’s with those who are on the right, not the left. This is hardly what you’d expect for a president who, according to the dominant narrative, has spent his presidency poking a stick in the left’s eye by cutting deals with conservative Democrats and Republicans.

Obama, in other words, seems to have developed his own silent majority. Rank-and-file liberal Democrats may not agree with everything he has done, but they do not share the sense of abandonment and betrayal that has defined liberal commentary throughout so much of his presidency. The party’s liberal base still very much likes him; it’s the elites who have turned on him.

The biggest reason for this disconnect, I would suggest, is that the liberal Democratic base liked Obama, both personally and ideologically, from the very beginning. Virtually from the moment he electrified the 2004 Democratic convention, liberals latched on to him as one of their own — and they haven’t (and don’t want to) let go.

This is not an unheard of phenomenon in politics, and it’s one of the reasons I’ve been so keen on comparing Obama’s political appeal to that of Ronald Reagan. Rank-and-file conservatives felt as strongly about Reagan in the 1980 campaign (and in 1976, for that matter) as liberals did about Obama in 2008. And they stayed true to him even when conservative elites concluded two years into his term that Reagan was a sellout.

Indeed, in the wake of this week’s drama over the Bush tax cuts, it’s worth recalling a similar moment in Reagan’s presidency, when congressional Democrats forced him into a tax hike in the summer of 1982. Like Obama now, Reagan had no leverage: The economy was spiraling out of control, voters were abandoning him, and Democrats were having great success (or seeming to have great success) hammering him over the exploding deficit. Thus did Reagan agree to a tax hike package that increased revenues by nearly $100 billion over the next three years — the largest tax increase in history, right-wing activists and commentators screamed. To these conservative elites, it was simply the latest act of betrayal by their one-time hero. When the GOP was drubbed in that fall’s midterms, they claimed vindication (see — not conservative enough!) and talked openly of challenging Reagan in the 1984 primaries. But rank-and-file conservative voters didn’t listen. They still liked the Gipper, still thought he was one of them, and still backed him in polling. It’s the same story today for Obama with rank-and-file liberals.

If Obama had been introduced to the Democratic base differently — that is, if they’d been suspicious and resistant to him and he’d landed in the presidency in spite of their skepticism — the objections of liberal elites might be far more damaging.

Here a parallel can be drawn to George H.W. Bush, who was introduced to the GOP’s “New Right” base in 1980 as the moderate, Gerald Ford-ish establishment Republican running against Reagan. Thus, the New Right, which essentially took control of the GOP for good with Reagan’s ’80 triumph, never really trusted Bush. Eight years of loyal service as Reagan’s V.P. was enough to win Bush the right’s benefit of the doubt in 1988, but when he “caved” as president — as he did on the S&L bailout, the 1990 tax hike, and a host of other issues — it merely brought back to the surface all of the right’s old attitudes toward him. So when the triumph of the Gulf War faded in 1991, there was room for Pat Buchanan to run to Bush’s right in the 1992 primaries. Buchanan didn’t win any states, but he did secure enough support — especially in New Hampshire — to severely embarrass the president. Obama’s history with liberals, though, is much different from Bush’s history with conservatives. 

This isn’t to say that it’s impossible for Obama to lose the Democratic base; it’s just that there’s a lot more goodwill toward him among that base — and a lot more willingness to rationalize his “betrayals” as sensible pragmatism in the face of the other party’s obstructionism — than most people recognize.

At his press conference Tuesday, Obama noted that many of the “purist” liberals now blasting his tax cut deal also savaged his final healthcare compromise earlier this year, which wiped out the public option. It’s an apt comparison. And it’s worth remembering that the cries of betrayal back then did nothing to lessen rank-and-file’s assessment of Obama’s job performance — probably because the main thing they saw was that Obama, unlike every president before him, had actually gotten healthcare done.

By Steve Kornacki-Salon: Wednesday, Dec 8, 2010

December 9, 2010 Posted by | Politics | , , , , , , , | Leave a comment

Tax-Cut Deal: If It’s Good for Regular Americans, Isn’t That Good Enough for Now?

 

Absolute disaster.” “Legislative blackmail.” “Almost moral corruptness.” We get it. Democrats in Congress really, really don’t like President Obama’s tax deal with the Republicans. But is it truly as apocalyptically bad as all that?

Please, people, take a deep breath, step back and stop working yourselves into a lather about cave-ins and core principles and lines in the sand. Earlier this week, I said we should wait to see what Obama got from Republicans in tax negotiations before convicting him of terminal wimpiness. He may have dispelled that image at his combative news conference Tuesday by calling out Republicans as hostage-takers and liberal naysayers as sanctimonious purists. But that’s just the politics. Let’s look at the economic winners in this package to get to the real bottom line:
— The long-term unemployed. In an economy with 9.8 percent unemployment, with five jobless people for each job opening, they’ll get another 13 months of benefits if they need them.
— Families with children and college students. They’ll continue to get tax credits included in last year’s stimulus package for two more years.
— Lower-income working families. The stimulus package expanded assistance under the Earned Income Tax Credit. The extra help will continue for two more years, benefiting some 6.5 million working parents with 15 million children.
— Businesses. They will continue to get tax breaks included in the stimulus, and they’ll also be able to expense 100 percent of their investments in 2011 (an Obama proposal from September).
— People who have jobs. Over 155 million workers will get a one-year, two-percent cut in the payroll tax (that pays for Social Security and Medicare). That’s worth about $1,000 to the average family, Obama says.
— Everyone with income. For at least two more years, they will continue to pay lower Bush-era tax rates on income under $250,000.
— Oh yeah, the rich. They’re getting a 35 percent inheritance tax and an exemption for individual estates under $5 million (Obama and Democrats say both are too generous), and — the part that makes Democrats question their reason for being — the lower Bush-era rates on income above $250,000.
Yes, yes, I know. Obama campaigned on a promise to eradicate George W. Bush’s “tax cuts for the rich” from the face of the earth. It was his battle cry. It defined him and his party. And granted, he should have had some strategy in place months ago to go to the mat for something, whether it was ending the high-end tax cuts or raising the income threshold, when there was still time for a few rounds of political warfare. To be fair, though everyone has known for 10 years that all the tax cuts for everyone were due to expire Dec. 31, Obama’s party refused to vote on extending the middle-class tax cuts before the election. “I would have liked to have seen a vote before the election. I thought this was a strong position for us to take into the election, to crystalize the positions of the two parties, because I think the Democrats have better ideas,” Obama said Tuesday.

When Democrats finally brought their tax cut package to the floor a few days ago, the Senate couldn’t overcome a filibuster threat. Time was running out. Obama said his top priority is to make sure 2 million long-term unemployed don’t lose their lifelines and “tens of millions of hardworking Americans are not seeing their paychecks shrink on January 1st just because the folks here in Washington are busy trying to score political points.” The agreement gives Washington time to have the political argument over taxes, he said, without doing harm to individuals or the economy as a whole.

Some liberal interest groups have pounced on Obama and branded the deal a complete sellout. “If Obama’s theory is that Independent voters will flock to presidential weakness, mission accomplished,” wrote Adam Green, head of the Progressive Change Campaign Committee. His evidence: An Associated Press dispatch Monday headlined “Republicans achieve top goal in Obama tax-cut plan.” Republicans “largely dictated the terms” of the compromise though they don’t control the House, Senate or White House, the AP said.

Never mind that Republicans would have preferred a permanent extension of the high-end tax cuts instead of the two years they got. Or that they agreed to extend unemployment benefits for an unprecedented 13 months, a $56-billion expense, and did not secure spending cuts to offset the cost. Their insistence on such an offset — even as they said there was no need to offset the 10-year, $700 billion cost of the high-end tax cuts — has repeatedly held up attempts to extend the benefits, including twice since Nov. 30.

By Tuesday, the AP had its economic team on the case. New headline: “Tax deal should help economy, analysts say.” Bill Scher of the very liberal Campaign for America’s Future implored Democrats to “do the deal. For the Jobless. For the Economy.” The liberal Center for American Progress (CAP) said the plan could save or create 2.2 million jobs. The group’s ThinkProgress blog says Obama’s priorities get far more money in the deal and help 32 times as many people as the GOP’s priorities.

The size and sweep of the deal reportedly were a surprise even to those who worked it out. It will cost about as much as the $787-billion stimulus plan that the GOP opposed nearly unanimously last year. It flies in the face of all the deficit-reduction talk of recent days. It could help goose the economy. If Democrats are incensed by the idea of spending $120 billion on two years of tax cuts for the wealthy (bonus tax cuts, in CAP’s terminology), maybe they’ll feel better if they think in more general terms about how the package could spark a recovery — for both the economy and their party.
By: Jill Lawrence, Senior Correspondent, Politics Daily-December 8, 2010

December 8, 2010 Posted by | Economy | , , , , , | Leave a comment

“Hypocrisy,” Say Morons

Elephants and facts just don't seem to go together

Stephen Moore of the Wall Street Journal editorial page, simultaneously reporting and propagating the Republican line du jour, accuses President Obama of a fiscal flip-flop:

Republicans plan to hammer the debt and deficit hypocrisy theme in the days and weeks ahead. White House economic adviser Larry Summers has lectured Congressional Democrats that now is a good time for the federal government to borrow to “stimulate demand” because interest rates are low. Yet the President keeps insisting that fiscal responsibility is an important priority of the White House. Republicans are having a field day. A recent email blast reminded supporters of a statement made by President Obama on November 18th: “It is important though to recognize if we keep on adding to the debt, even in the midst of this recession, that at some point, people could lose confidence in the U.S. economy in a way that could actually cause a double dip recession.”

Fiscal schizophrenia reigns in the White House.

Okay, let’s go back and read what Obama said last November 18th:

There may be some tax provisions that can encourage businesses to hire sooner rather than sitting on the sidelines; so, we’re taking a look at those. I think it is important though to recognize that if we keep on adding to the debt, even in the midst of this recovery, that at some point, people could lose confidence in the US economy in a way that could actually lead to a double-dip recession.

And so one of the trickiest things we’re doing right now, is to on the one hand make sure the recovery is supported and not withdraw a lot of money either with tax increases or big spending cuts – and states, for example, need a lot of support to keep hiring teachers and so forth – at the same time, making sure that we’re setting up a pathway longterm for deficit reduction.

Got that? Obama was saying the same thing he’s saying now. In the short run, we have an economic crisis that requires deficits. In the long-run, we’ll need to reduce the deficit. (And the long-term costs of temporary stimulus are pretty low.) Indeed, taking steps that increase long-term deficits could actually hurt in the short run. These are not contradictory ideas. Indeed, in his November interview, Obama endorsed the very notion (helping states mitigate budget cuts for teachers and other things) that he’s pushing for right now.

Moore and the Republicans think it’s “hypocrisy” to be for high deficits during a liquidity crisis but against them during a recovery. Really. The whole Republican message is based on not understanding this distinction.

By:  Jonathan Chait-The New Republic-June 18, 2010

June 18, 2010 Posted by | Economy | , , , , , , , , | Leave a comment