“Holding The Credit Rating Hostage, Again”: The GOP’s Big New Plan To Take Down ObamaCare
With crucial pieces of the Affordable Care Act set to kick in later this year, some conservative lawmakers have been trying to rally support within the party to shut down the government to block the law, or to force President Obama to scrap it.
That threat — a refusal to pass a budget (or in D.C. jargon, a “continuing resolution”) to fund the government until ObamaCare is defeated — hasn’t gained traction with the party at large. Yet now, multiple reports say the thinking inside the GOP is to shift the ObamaCare battle from the budget fight to another looming fall showdown: The debt ceiling. (For a refresher, read the Guardian‘s helpful history of the debt ceiling here.)
From the Washington Examiner’s Conn Carroll:
House leadership firmly believes that attaching anything “new” to a continuing resolution is politically untenable, while passing a higher debt limit, without attaching anything new, is also politically impossible. Hence the House leadership’s desire to fight ObamaCare through the debt limit, but not the CR.
The plan is to pass a 60-day CR extension that keeps discretionary spending at the existing sequestration levels. Then House leadership wants to combine Democratic desires to roll-back sequestration with conservative desires to delay/defund ObamaCare into the debt limit fight. [Washington Examiner]
A government shutdown, besides failing to actually defund ObamaCare, has the potential to be politically disastrous for the GOP. Republicans bore the brunt of public rage over the government shutdown in 1995 when they refused to bargain with President Clinton, and they would likely suffer the same fate should they go that route again now. No wonder conservative commentators like Charles Krauthammer have labeled the strategy “really dumb.”
Though the impact of a debt ceiling standoff is tougher to predict, the fallout would be more economic than political, potentially sparing the GOP on that front. Still, if the debt ceiling isn’t raised — meaning the U.S. couldn’t borrow more money to pay its existing debts, thus threatening the nation’s credit rating — the fiscal consequences for the country could be catastrophic. That’s why this gambit would represent a “massive escalation” in the ObamaCare funding showdown, argues New York‘s Jonathan Chait.
Closing the federal government for a limited period would have mostly political consequences (probably for the Republicans). The substantive effects build up cumulatively and start to really harm the economy after weeks on end, but the two sides could negotiate through a shutdown.
The debt ceiling is another story. The effects of missing the deadline would be immediate and, while unpredictable, potentially very large and irreversible. That’s why Obama now insists, after disastrously allowing himself to be extorted in 2011, he won’t negotiate the debt ceiling, but has never made an analogous pledge about a continuing resolution. [New York Magazine]
Unlike the very vocal threat to shut down the government over ObamaCare, the latest rumored standoff is, for now, merely rumblings from behind closed doors. And there’s at least some reason to believe it will amount to no more than an empty threat in the end.
The Republican leadership has been increasingly under pressure to appease the right wing of the party. Publicly insisting that ObamaCare funding will be fought further down the road would soothe the demand for that fight in the first place, while kicking the can down the road, perhaps indefinitely.
As the Washington Post’s Greg Sargent points out, this is exactly what happened with the last debt ceiling fight. In January, Boehner said the upcoming sequester debate, not debt ceiling fight, gave the GOP its best position to push for major budget cuts. Yet the sequester came and went without the GOP winning those deep concessions.
There’s some reason to think the same dynamic is at play here, too. The health care exchanges mandated under the ACA go into effect October 1. If Republicans really try to defund ObamaCare during the debt ceiling talks, they will, in effect, be arguing a settled debate.
Here’s Sargent:
So now, under this emerging plan, Republicans would be moving to demand a delay in ObamaCare’s implementation — after the exchanges kick in — in exchange for not allowing the country to go into default, even though Boehner himself has already admitted the debt limit must be raised to avoid putting the full faith and credit of the U.S. at risk?
What all of this comes down to is that GOP leaders need to decide if they are going to level with their base, and acknowledge that blocking ObamaCare by using this fall’s confrontations as leverage is just a nonstarter, period, full stop — whether we’re talking about a government shutdown, the debt limit, or whatever. [Washington Post]
By: Jon Terbush, The Week, August 15, 2013
“Mitch McConnell Digs A Hole, Falls In”: Frankenstein Has Found That His Monster Is Running Out Of Control
Senate Minority Leader Mitch McConnell (R-Ky.) talked to a local reporter this week about the Affordable Care Act, which he described as the “single worst piece of legislation passed in the last 50 years in the country.” The Republican senator restated his position that “we need to get rid of” the law.
But McConnell also made an off-hand comment that seemed wholly uninteresting at the time: “I mean, there are a handful of things in the 2,700 page bill that probably are OK, but that doesn’t warrant a 2,700 page takeover of all American health care.”
In 2013, with the right’s hysteria over health care seemingly getting worse, the comments are apparently controversial.
In an ordinary political environment, McConnell’s remarks would hardly be newsworthy…. But the political environment surrounding Obamacare is anything but ordinary — with the ferocious Republican assault on the bill, the party’s exaggerated warnings that it will ruin American freedom, and the base’s determination to scrap every last bit of it. So McConnell’s remarks quickly became fodder for his conservative primary challenger, Matt Bevin, who accused the GOP leader’s of “flip-flop[ping] on repealing Obamacare in its entirety.”
“We have to do whatever it takes to repeal Obamacare, and if we can’t repeal it, we have a responsibility to the American people to defund it,” Bevin said in a statement Thursday, responding to McConnell’s remarks. “If Mitch McConnell had ever worked in the private sector, he might understand that. If Senator McConnell is not willing to act to end Obamacare, he needs to get out of the way.”
So let me get this straight. For reasons that have never really made any sense, McConnell described “Obamacare” as the “single worst piece of legislation passed in the last 50 years in the country.” He vowed to “get rid of” the law. He condemned it (falsely) as a “takeover of all American health care.”
And for some Republicans, this position is too moderate and accommodating.
This is silly, but let’s not overlook the larger context: McConnell helped create this mess in the first place. If he’s annoyed by the inflexibility, the senator has no one to blame but himself.
I imagine McConnell was probably trying to offer himself a little general-election cover by saying “there are a handful of things in the 2,700 page bill that probably are OK.” The more the senator says he wants to destroy the entirety of the law — every letter of every page, no matter how effective or popular the idea — the more vulnerable he is to criticisms from the American mainstream.
Would McConnell take coverage away from young adults who can now stay on their family plans through age 26? Would he scrap protections for Americans with pre-existing conditions? Would he end tax breaks for small businesses? Would he end breaks for seniors on prescription medication? McConnell left himself an out — sure, there are some elements he can tolerate, but he still hates the law.
But McConnell is in a red-state primary fight, and it’s apparently a problem to say anything even remotely supportive of the dreaded “Obamacare.”
Sahil Kapur concluded, “That McConnell is being attacked for his remark illustrates the box Republicans have put themselves in while feeding conservatives’ greatest fears about the Affordable Care Act.” So true. GOP leaders, including McConnell, have to realize that they created this monster — they have spent years telling Republican activists and Republican media that “Obamacare” is a communist/fascist/Nazi takeover that will kill the elderly, destroy capitalism, and quite likely end civilization as we know it.
GOP leaders’ rhetoric has never made a lick of sense — Obamacare is a pretty moderate law, built around mainstream ideas that have traditionally enjoyed bipartisan support — but McConnell and his allies pushed this garbage anyway, in part to keep the Republican base fired up, and in part because it was good for fundraising.
And now Frankenstein has found that his monster is running out of control. Well, Mitch, you probably should have thought of that before.
By: Steve Benen, The Maddow Blog, August 15, 2013
“Misleading Others And Lying To Themselves”: Why John Boehner Has To Keep Making Crazy Threats
You probably read yesterday about the efforts of John Boehner and the Republican leadership in the House to convince the rank-and-file members that shutting down the government until Obamacare is defunded is a Bad Idea, and not a Brilliant Political Maneuver. Robert Costa’s account in the National Review has the basic narrative. It looks, now, like Boehner has succeeded in defusing the shutdown threat. All he had to do was promise something worse. Now we are going to not raise the debt ceiling instead.
As Jonathan Chait points out, replacing the shutdown threat with a default threat is actually much crazier and more potentially disastrous. But Boehner couldn’t get Republicans to agree to just give up on defunding Obamacare this year. He had to promise to exchange their one crazy plan to do so with another one that will go into effect later. And when it is time for that one to go into effect, he will need to find something else to distract them for a little while, until the next crazy plan is ready to go. As Brian Beutler says, we’ve seen this play out over and over again. Boehner has to promise to let Republicans do some apocalyptic thing later in order to get them to avoid doing some apocalyptic thing now. So far we’ve avoided an apocalypse.
But the people Boehner is trying to deal with here don’t see any of these threats as particularly apocalyptic. They don’t really see anything at all that might contradict their ideological stances. The House members Boehner’s trying to walk back from the ledge don’t read the Times or the Post. They don’t care what Brookings or the CBO or CRS say. They believe every “nonpartisan” or “objective” information source to be a part of the vast liberal conspiracy, and they rely for their facts and predictions strictly on sources explicitly aligned with the conservative movement. And those sources are just telling them crazy, untrue things, all the time.
That’s Boehner’s problem: He’s trying to ease his members into the real world, where defunding Obamacare is impossible as long as Obama is in the White House, and where attempts to do so via incredibly unconventional means could have disastrous consequences. What makes his job more difficult is that this reality isn’t acknowledged by most of the conservative organizations his members, and his party’s voters, exclusively follow.
Take Heritage, for years the most influential conservative think tank (it is still in the top five, depending on how you categorize advocacy groups like FreedomWorks). Heritage has been attempting to convince Republicans that a shutdown wouldn’t be such a big deal. Polls commissioned by Heritage say a government shutdown wouldn’t cause anyone to lose their seats, so have at it! The poll, by the way, was conducted entirely in Republican or Republican-leaning House districts.
Now, the venerable Heritage Foundation isn’t saying this. The poll, and the shutdown encouragement, were issued by “Heritage Action for America,” the 501(c)(4) group founded as Heritage’s sister organization in 2010, to take advantage of the new post-Citizens United “almost anything goes” rules for supposed “social welfare” organizations. “Think of it as the Heritage Foundation with teeth,” Betsy Woodruff said in the National Review. So far Heritage Action has been using those teeth to drag the GOP into the world of right-wing fantasy, in which the Farm Bill must be rejected because it does not cut food stamps enough, and the border “surge” amendment to the immigration reform bill must be opposed because $38 billion worth of fences and agents aren’t enough.
For years, the Heritage Foundation’s mission was to craft conservative policy ideas that would both be possible to implement and be broadly popular. School vouchers and welfare reform and tax cuts are all ideas within the realm of the politically possible, and they are also all ideas that have polled quite well at various times. This was effective: Reagan and George W. Bush’s domestic agendas came largely prepackaged by Heritage. But now the organization is using its lobbying arm to just demand total fealty, damn the consequences, to the most extreme form of conservatism possible. That is something of a shift. But it’s a shift the movement has seemingly embraced in the Obama era. Now even supposedly “sober” and “grown-up” conservatives argue that breaching the debt ceiling wouldn’t be so bad — may even indeed be pretty good depending on how you look at it! — and work to convince Republicans that the way to handle demographic change is with strict immigration limits and the militarization of the border, combined with making the party even more dependent solely on white votes.
This is not a left-winger pining for the days of Republican “moderation.” Heritage and the National Review were always very conservative. They were just realistically conservative. Professional conservatives graduated some time ago from misleading others to lying to themselves.
If you want evidence, look at the rapturous praise that greeted the publication of “American Betrayal” by Diana West, a book that argues that … McCarthy was right about everything and that the FDR administration was a puppet regime for Stalin, and that we purposely delayed winning World War II so that the Soviets could have more of Europe when it was finished. The book is just untrue, start to finish. Conservative historian Ronald Radosh — writing in the online publication of David Horowitz, a man who is not unfriendly to wild conspiracy theories about leftists — patiently and at length knocked down nearly every single one of its claims in a review. The book is so silly that Radosh planned to ignore it, but he couldn’t once he saw how the movement had fallen for it:
But I changed my mind after seeing the reckless endorsements of its unhinged theories by a number of conservative individuals and organizations. These included the Heritage Foundation which has hosted her for book promotions at a lunchtime speech and a dinner; Breitbart.com which is serializing America Betrayed; PJ Media which has already run three favorable features on West; Amity Shlaes, who writes unnervingly that West’s book, “masterfully reminds us what history is for: to suggest action for the present”; and by conservative political scientist and media commentator Monica Crowley, who called West’s book “A monumental achievement.”
Hey, there’s Heritage again! And Amity Shlaes, who wrote a book about how FDR made the Depression worse with liberalism. That book didn’t really coherently build an economic case against Keynesianism but because it had a thesis conservatives liked it quickly became popular, and she has been writing for Forbes and the Wall Street Journal ever since. (And Bloomberg View, for some reason.) This West book is just another step away from reality, into the sweet embrace of fantasy. FDR didn’t just make the Depression worse, he also surrounded himself with Stalinists! The far right has been pushing this shit for decades, obviously. It used to be the mainstream right’s job to make sure it only traveled as far as was politically expedient. Now they lap it up themselves.
This is why Boehner is having so much trouble. He can’t live entirely in this wonderful fantasy world. He has to actually raise the debt ceiling and make sure essential government services get funded. All the institutions designed to make his life easier, to corral the voters, activists and even legislators into supporting the agenda and ensuring the future success of the Republican Party, are all too busy make-believing about the 1930s and convincing themselves that they can defeat Obamacare if they simply want to bad enough, to be of any assistance.
By: Alex Pareene, Salon, August 15, 2013
“Senate Minority Bystander”: Given The Circumstances, Mitch McConnell Has Earned His New Title
The fight among Republicans over whether to shut down the government in the fall isn’t going away. The Heritage Foundation’s political-activism arm is trying to convince GOP lawmakers that the fallout wouldn’t be that bad; Karl Rove and Sen. Mike Lee (R-Utah) sparred this week on Sean Hannity’s radio show over the strategy; and House Majority Leader Eric Cantor (R-Va.) and RNC Chairman Reince Priebus are conspicuously contradicting each other.
This is ordinarily the point at which Republican leaders intervene to prevent the intra-party fissures from getting too severe. And for a brief moment yesterday, it looked like that had finally happened.
Senate Minority Leader Mitch McConnell told a crowd at a health care forum in Kentucky on Tuesday that while he does not like the president’s health care law, shutting down the government over funding it “will not stop” it from existing.
“I’m for stopping Obamacare, but shutting down the government will not stop Obamacare,” McConnell told the audience at Baptist Health Corbin, according to a WYMT-TV reporter at the event.
Good for McConnell. The Kentucky Republican had been content to sit on the sidelines while Republicans tore each other apart on this issue, but yesterday, he finally offered a little straight talk: those who hope to tear down the federal health care system need to realize that shutting down the government will not actually bring them closer to their goal.
This is the sort of leadership that’s been lacking in the GOP in recent weeks, so it was a welcome a development. That is, until McConnell quickly announced he didn’t really mean it.
As news of McConnell’s comments made the rounds yesterday afternoon, the senator’s office confirmed to Greg Sargent that McConnell “did not take sides in the dispute over whether to stage a shutdown confrontation.”
And as it turns out, the office was telling the truth — a local station aired the interview with McConnell, and while he noted that a shutdown would not stop implementation of the Affordable Care Act, the senator did not take the next step of endorsing one strategy or another.
In other words, McConnell realizes that shutting down the government won’t stop “Obamacare,” but he thinks a shutdown may be worth doing anyway. Or maybe not. He doesn’t want to say.
Let’s not brush past the larger context. Soon after McConnell seemed to reject his party’s ridiculous (and probably suicidal) shutdown scheme, McConnell’s office was eager — desperate, even — to assure everyone that the Senate Leader was not, in any way, demonstrating any kind of leadership, or stating an opinion in public. He’s aware of the major dispute among his own followers, but McConnell wants one thing to be perfectly clear: he’s ready to let this division continue, without so much as taking a side.
Maybe he needs a new title. Senate Minority Bystander seems more appropriate under the circumstances.
By: Steve Benen, The Maddow Blog, August 14, 2013
“A Symbol Of Defiance Between GOP Lawmakers”: Will Republicans Shut Down The Government To Spite Karl Rove?
Most Republicans in Congress agree on one thing: Obamacare needs to go. How to get rid of the health care law, however, is a bit more complicated.
The GOP is split between those who believe the sole way to combat The Affordable Care Act is by opposing all fall spending bills that contain funding for the law—resulting in a government shutdown – and those who believe in any strategy that will not involve such extreme action.
Leading the government shutdown movement is Senator Mike Lee (R-UT), arguing: “If you fund this thing, you own it.” In Lee’s world, Republicans who do not believe closing the government is the appropriate measure to combat the Affordable Care Act are automatic backers of the law.
Lee’s intricate plan involves the GOP-controlled House passing a bill funding the government, which would contain a rider from Rep. Tom Graves (R-GA) that would defund the Affordable Care Act — and leaving the ultimate decision to shut down the government or pass the bill with that rider included up to Senate Democrats.
“Would they choose to shut down government? Or do the right thing?” Lee asked of Senate Democrats.
This is a plan that Republican political consultant Karl Rove quickly rejected. According to Politico, Rove “concluded Lee’s effort would backfire and be a replay of 1995, a government shutdown often blamed on the GOP.”
Still, Lee and other Tea Party lawmakers, including Senators Ted Cruz (R-TX) and Marco Rubio (R-FL), believe a government shutdown is the only option. Lee referred to any strategy besides his as an example of Republicans “caving.”
Rove warned, “This is the one strategy, the one tactic that might be able to guarantee that the Democrats pick up seats in the Congress in 2014.”
Rove’s comment echoed a similar thought from Senator Bob Corker (R-TN), who called the effort “self-defeating.” Other Republican leaders have termed it “silly” and “stupid.”
According to the Washington Post, several GOP leaders have realized that Rove’s approach may not be an effective way to prevent the government shutdown. Publicly condemning the strategy can easily backfire; tackling it openly, as Rove did, has already resulted in those in favor of the shutdown painting its opponents as scared and weak Obamacare backers, not willing to “defeat Obama tyranny.”
The Rove-Lee debate on Sean Hannity’s radio show proved that even with Rove pointing out just how ineffective, counterproductive and unnecessary a government shutdown would be, Lee’s position won’t change; instead, it grows more steadfast. Rove’s words serve as Lee’s evidence that the Republican Party is too “weak-kneed” to make a move against the president, and the only way to prove to Rove and other GOP leaders that they are actually impeding the Republican Party, rather than strengthening it, is, perhaps, to call for a government shutdown.
As long as Republican leaders fight publicly, they provide those in favor of the shutdown their greatest argument: Republican leadership is weak, and it’s time to take a stronger and more combative stance against Obamacare, even if it means closing down the government. Suddenly, a shutdown is seen as the ultimate measure of GOP loyalty and leadership.
The government shutdown has become more than just a position on Obamacare; it is a symbol of defiance between GOP lawmakers.
If Rove — or any Republican, for that matter — keeps publicly calling out the strategy’s obvious idiocy, he is just pushing his more conservative counterparts in Congress to go through with the effort.
Because of this, several GOP leaders have begun to lobby House Republicans privately, rather than openly bash their strategy.
National Review’s Robert Costa reported that, “House insiders say Boehner and Cantor had talked much of their conference away from the edge,” and Republicans are “now confident that House Republicans will not tread into a shutdown battle with the Obama White House.”
Just a week ago, Rubio argued that the government shutdown was “no longer an ideological thing,” and he’s right. Now it is a deeper split in the already divided GOP.
By: Elissa Gomez, The National Memo, August 13, 2013