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“Exhaustion”: The Strongest Reason For Hope And A Way Out Of Our Budget Wars

There are, believe it or not, grounds for hoping that the so-called sequester, stupid as it is, might open the way to ending our nation’s budget stalemate.

Hope is in short supply right now, but the case for seeing a way out of the current mess rests on knowable facts and plausible assumptions.

It starts with the significant number of Republicans in the Senate — possibly as many 20 — who think what’s going on is foolish and counterproductive. The White House is betting that enough GOP senators are prepared to make a deal along lines that President Obama has already put forward.

Obama’s lieutenants argue that, while Republicans are aware that the president is seeking new revenue through tax reform, many did not fully grasp the extent to which he has offered significant long-term spending cuts. These include reductions in Medicare and a willingness (to the consternation of many Democrats) to alter the index that determines Social Security increases. Obama has proposed $930 billion in cuts to get $580 billion in revenues.

Senior administration officials note that Obama cannot stray too far from his existing offer, which was already a compromise, without losing the Democratic votes a deal would need. But his framework, they believe, could create a basis for negotiation with Republican senators, such as Sen. Lindsey Graham (S.C.), who dislike the deep, automatic cuts in defense spending, and others, such as Sens. Susan Collins of Maine and Bob Corker of Tennessee, who dislike government-by-showdown.

Graham was especially bullish, declaring that Obama’s outreach to Republicans — the president invited about a dozen GOP senators to dinner Wednesday night — was “the most encouraging engagement on a big issue I’ve seen since the early years of his presidency.”

If the Senate actually passed a bipartisan solution, it would still have to clear the House, requiring Speaker John Boehner (R-Ohio) to allow yet another bill through with a large number of Democratic votes. But the sequester almost certainly marked the high point of solidarity among House Republicans. Letting it take hold was an easy concession for Boehner to make to more militant conservatives; it kept them from pushing toward a government shutdown or a politically and economically dangerous confrontation over the debt ceiling.

Now comes the hard part for Boehner. Already, more moderate conservatives are pushing back against the depth of the budget cuts that Rep. Paul Ryan will have to propose in order to balance the budget in 10 years. At least some House Republicans may come to see a bipartisan Senate-passed deal as more attractive than the alternatives.

In the meantime, the House passed a continuing resolution on Wednesday to keep the government functioning until the fall. It provided the Defense Department with greater flexibility to handle the automatic cuts. The Senate and the House must agree on a bill by March 27, and Sen. Barbara Mikulski, a Maryland Democrat who chairs the Appropriations Committee, argues that flexibility on defense should be matched on “compelling human priorities” and in other domestic areas, including science and technology. Yet both sides seem committed to keeping the government open, which would create a kind of cold peace.

This, though, would not prevent the automatic cuts from becoming more noticeable, and they are likely to get more unpopular as time goes on. Their effects would be felt by, among others, air travelers, school districts, state governments, universities and the employees of defense and other government contractors. House Republicans representing districts with large military bases are apt to be especially eager to reverse the cuts.

From Obama’s point of view, engaging with Senate Republicans now to reach a broad settlement makes both practical sense, because there is a plausible chance for a deal, and political sense, because he will demonstrate how far he has been willing to go in offering cuts that Republicans say they support. In the process, he would underscore that the current impasse has been caused primarily by the refusal of House Republicans to accept new revenues.

While it’s the GOP that has been using serial, self-created crises to gain political leverage, many in the party are no less worn out by them than the Democrats. “Even we are tired . . . of lurching from one cliff to another,” Sen. John McCain (R-Ariz.)told the Wall Street Journal on Wednesday. “I think that’s lending some pressure towards trying to come up with some kind of a grand bargain.”

Thus does the strongest reason for hope arise from one of the most basic human responses: exhaustion.

 

By: E. J. Dionne, Jr., Opinion Writer, The Washington Post, March 6, 2013

March 10, 2013 Posted by | Budget, Sequestration | , , , , , , , | 1 Comment

“The B-Word”: Paul Ryan And The GOP Think Voters Are Dumb

Do House Republicans think voters are stupid? Why yes, yes they do, judging by the latest messaging the GOP is preparing to roll out in its big budget push. In the Republican view, simple voters find notions like “balance” confusing when it comes to issues of taxes, spending cuts, and the budget.

Politico has an article up raising the curtain on the Republican PR effort around the budget plan Rep. Paul Ryan will unveil next week. About halfway through, it contains this nugget on the Republican messaging strategy

“Democrats’ calls for a ‘balanced approach’ are clearly poll-tested, but it’s because people associate the word ‘balanced’ with a balanced budget — exactly the opposite of what Democrats’ budgets actually do,” the aide said. “Look for Republicans to go on offense on Democrats’ ‘balanced’ rhetoric by pointing out that there is nothing ‘balanced’ about Senate Democrats or the president’s budgets — in fact, they never balance at all.”

In short “balanced,” in the view emanating from Paul Ryan world, is some sort of magical word which simple voters are easily confused by. They hear “balanced” and—apparently incapable of absorbing the words around it in a given thought—just assume it means “balanced budget.” Now I get the concept of the low information voter—people who pay only passing attention to politics and so have details and often entire facts wrong—but this is an assumption of a low intelligence voter. You voters are too stupid to realize it, the messaging goes, but you really agree with us. You just need to understand that you’re easily confused by concepts like “balance.”

While we’re here let’s quickly reality-test the assertion, just for kicks. What do polls say about a balanced approach? Do voters really prefer Obama’s balanced way of dealing with deficits, and if so is it because they’re ensorcelled by the b-word, or do they get the substance? Conveniently, PolitiFact.com recently checked out the assertion that most voters agree with Obama’s approach. Their conclusion: “Obama said of a balanced approach to deficit reduction that ‘the majority of the American people agree with me and this approach, including, by the way, a majority of Republicans.’ … The majority of the polls we found support the president. We rate the president’s statement Mostly True.”

They didn’t check whether simpleton voters were just entranced by the “b-word,” but they did cite poll after poll after poll where the word wasn’t used but rather the concept—dealing with the budget deficit with a mix of spending cuts and tax increases—was explained, and majorities of voters favored it over a spending-cut-only approach. This is in line with the preponderance of polls which also show that most voters favor notions like compromise generally.

In short, “balance” polls well on the substance so Republicans are trying to neutralize the concept as a talking point by—in a Orwellian bit of redefinition—muddying the meaning of the word.

The rest of the Politico article does provide some insight into Ryan World. The budget won’t cut much more than last year’s, it says, even though it balances the federal books twice as fast as the last version (Ezra Klein explained why yesterday). And, reporters Jake Sherman and David Nather write, Ryan aides are unafraid of a backlash against the plan:

Politically, House Republicans think it carries next to no risk: Conservative truth-telling, they say, is in vogue. Two years after Ryan’s decision to transform Medicare into a voucher-like system, the party’s presidential ticket won seniors by 17 percentage points and House Republicans are still comfortably in the majority, even if Mitt Romney did lose the presidency with Ryan as his running mate.

What’s a presidential level thumping between friends? Especially when voters are such nimwits. What’s striking is what a hoary talking point this is. Has there been any point in the last, say, four years when House Republicans would have said that “conservative truth-telling” wasn’t in vogue? (And the notion of “conservative truth-telling” is especially funny when it comes to Paul Ryan and his budgets.)

A line much later in the Politico piece nicely sums things up: “All of this doesn’t mask a larger problem for Republicans: Their budget messaging stinks.”

 

By: Robert Schlesinger, U. S. News and World Report, March 7, 2013

March 8, 2013 Posted by | Budget, GOP | , , , , , , | Leave a comment

“The Hostage Takers”: Blame Eric Cantor And Paul Ryan For The Sequester

John Boehner’s laughably weak leadership as House Majority Leader surely must be seen as being partly to blame for the sequester — the Tea Party caucus in Congress clearly has a tight leash on the Speaker.

But at least Boehner tried for a “Grand Bargain” with President Obama in 2011, only to be reined in by Eric Cantor and Paul Ryan, according to a recent interview Cantor conducted with The New Yorker‘s Washington correspondent, Ryan Lizza. Cantor admitted that there was a final meeting with Boehner, Ryan and himself where Boehner wanted to accept the president’s $1.2 trillion offer, but was talked out of it by Cantor and Ryan.

“The reason why we said no in that meeting, ‘don’t do this deal,’ was because what that deal was, was basically going along with this sense that you had to increase taxes, you had to give on the question of middle-class tax cuts prior to the election,” said Cantor. “And you knew that they had said they weren’t giving in on health care.”

So basically, this was about the 2012 election. Cantor and Ryan wanted to let the voters decide on taxes and health care instead of preempting it with the Obama-Boehner Grand Bargain. Then in November, the American public overwhelmingly voted for President Obama and his balanced approach to deficit reduction and growing the economy through a mix of spending cuts, tax revenues and closing corporate loopholes — a result that has been confirmed in repeated polls. The American people also doubled down on Obamacare by re-electing the president.

Cantor concluded the interview with Lizza with this telling remark: “That’s why we said, ‘Let’s just get what we can now, abide by our commitment of dollar-for-dollar, and we’ll have it out, as the president said, on these two issues in the election”.

The failure of the Grand Bargain resulted in the Budget Control Act of 2011, which included the automatic budget sequestration.

So it is now clear that Cantor and Ryan killed the Grand Bargain, leading to the sequester and the onset of European-style austerity and possibly another recession, and their basis for that was their supreme confidence that they would win the election. What is unclear is why, after their ideas were thoroughly rejected, they are defying the will of the American people and a popular president by refusing to compromise.

Could it be that they wanted this all along? Here is what Ryan said after the law putting the sequester in place was passed in August, 2011:

“What conservatives like me have been fighting for, for years, are statutory caps on spending, legal caps in law that says government agencies cannot spend over a set amount of money. And if they breach that amount across the board, sequester comes in to cut that spending, and you can’t turn that off without a supermajority vote. We got that in law. That is here.”

By: Josh Marks, March 1, 2013, The National Memo

March 2, 2013 Posted by | Sequester | , , , , , , , , | Leave a comment

“By Their Own Hands”: While Republicans Warn Against “Greece”, That Is Exactly Where Austerity Budgeting Will Lead The U.S.

Indebted America is in danger of turning into destitute Greece, or so congressional Republicans and conservative commentators have been warning us for years now. For many reasons, this is an absurd comparison – but it may not always be quite so ridiculous if Washington’s advocates of austerity get their way.

The Republicans actually want to impose Greek-style budget-slashing on the United States. And the federal budget sequestration scheduled to take effect next week could represent the first serious step here toward the kind of fiscal policies that have proved so ruinous not only in Greece — raising unemployment, destroying hope, and encouraging extremism — but across Europe.

Nearly every day, House Speaker John Boehner or Senate Minority Leader Mitch McConnell – or Senator Rand Paul or Rep. Paul Ryan, or almost any other prominent Republican – insists that the only way to improve the economic prospects of the American people is to impose drastic budget cuts on them. While these Republican leaders don’t love the sequester budget only because it cuts too deeply into defense programs, they are eager to impose similar cuts or worse on every domestic function, from health care and education to food safety and infrastructure.

Unwilling as they usually are to name specific cuts, the Republican plans that have emerged lately are indeed similar in scope and impact to those imposed by European central bankers on Greece, Spain, Portugal, Ireland, and other beleaguered states across the continent (and imposed by the British government on the United Kingdom itself).

Enacting the same fiscal policies in this country would, presumably, induce the same effects. Yet despite their enthusiasm for extreme austerity the Republican, Tea Party, and assorted media soothsayers almost never want to discuss what has happened in Europe as a result of those same policies. It is not always possible to ignore the unhappy reality of renewed recession, from England to Italy.

Just last weekend, the British were jolted by news that Moody’s had downgraded investments in their country’s sovereign debt from its traditional AAA status.

Why would the bond rating agency do something like that? Principally because the miserable budgeting of Tory Prime Minister David Cameron’s government has mired the United Kingdom in negative growth, with no prospect of reducing its debt, which keeps growing. So the scheme that was supposed to improve the fiscal outlook for the British has merely lowered their credit rating. That wasn’t supposed to happen — in fact, the austerity plan was designed to preserve Britain’s AAA rating — but it was inevitable as soon as Downing Street chose budget-balancing over growth.

The same downward trajectory can be marked wherever the leaders of dominant Germany have forced austerity plans onto indebted governments.

So damaging has this process become for all of Europe that the Germans finally began suffering the ironic consequences in the last quarter of 2012. Their export-led growth strategies cannot work when their neighbors, reduced to poverty, can no longer purchase German goods. If German exports pick up again this year, it will only happen because customers in the U.S. and China remain exempt from the effects of austerity.

Until now, the United States has escaped the fate of Europe, remaining the “sole bright spot” of steady growth in the global economy, because President Obama resisted the fiscal extremism of his Republican adversaries, and contrived to ward off recession with necessary spending. Now sequestration, with all of its dire social and economic effects, will provide a taste of what is to come under Republican austerity: a shrunken nation with a dim future.

 

By: Joe Conason, The National Memo, February 26, 2013

February 27, 2013 Posted by | Sequester | , , , , , , , , | 2 Comments

“Republican Reformers”: Absolutist’s Advocating For No Tax Hikes Of Any Kind For The Rich

It’s been a good week for the intellectual cause of reforming the Republican Party. Ramesh Ponnuru has a sharp op-ed in the New York Times today arguing that Ronald Reagan’s economic program was well tailored to the conditions of 1980, but does not meet the needs of the present day. (Ponnuru could have noted that Reagan himself altered his own program in response to the massive structural deficits it created — the conservative liturgy defines the Reagan gospel as the pure 1981 version.) Bush administration veterans Michael Gerson and Peter Wehner have a longer piece in Commentary arguing along similar lines.

These are smart arguments and I devoutly hope for their success. Yet they contain the same flaws that seem to recur in all the efforts to reform the GOP from within: an unwillingness to identify or confront the forces within the party that prevent these reforms from succeeding.

Yesterday, for instance, Paul Ryan appeared on This Week to argue once again for why Republicans would not accept any new revenue as part of a deficit reduction plan:

But taking tax loophole, what we’ve always advocated is necessary for tax reform, means you’re going to close loopholes to fuel more spending not to reform the tax code. …

So if you take tax loopholes to fuel more spending, which is what they’re proposing, then you are preventing tax reform, which we think is necessary, to end crony capitalism and to grow the economy.

This is pure Republican orthodoxy. What’s remarkable about the ability of anti-tax zealots like Ryan to sustain their position is that it places them in direct opposition to conservative goals on both defense and spending. After all, Obama is offering to cut spending on retirement programs and to cancel out cuts to defense — two things large chunks of the GOP would like — in return for more revenue. He’s not even demanding higher rates. He’s merely asking to reduce tax deductions.

Ryan insists he won’t take the deal, because if he uses the revenue from reducing tax deductions to close the deficit, it won’t be available to reduce tax rates. Every other fiscal priority must give way for the overriding goal of reducing marginal tax rates.

But where are the Republicans speaking in opposition to Ryan and his allies? I haven’t seen a single one. Instead, they ignore the existing configurations altogether. Wehner had a blog post yesterday railing against “the refusal by Democrats to reform entitlement programs in general.” But Obama has been offering to reduce spending on Social Security and Medicare for two years now, in return for Republican agreement to spread the burden of the fiscal adjustment. They won’t take the deal.

Now, maybe Obama’s deal isn’t exactly what Ponnuru, Gerson, and Wehner would like. But if Republicans want to reform their party’s identity and make it into something other than absolutist advocacy of low taxes for the rich, they need to come up with some negotiating position on fiscal issues other than “no tax hikes for the rich of any kind no matter what we get in return.”

 

By: Jonathan Chait, New York Magazine, February 18, 2013

February 25, 2013 Posted by | Revolution, Sequester | , , , , , , , | Leave a comment