“A Virtual War On The Poor And Middle Class”: Give House Republicans Credit For Producing A Budget This Cruel
Everyone condemns politicians for being too quick to pander, too concerned with doing the popular thing, too willing to hide what they really believe in order to curry favor with an unmerciful electorate. So when a group of politicians throws caution to the wind and tells us what they really think despite the political risk, they deserve our praise. So it is with the House Republicans, who have just released their new budget.
That isn’t to say the budget is free of gimmickry or outlandish projections (we’ll get to that in a moment). But let’s look at some of the rather notable things it would do:
Turn Medicare into a voucher program. This is accompanied by a lot of rhetoric about how the magic of the market will hold down costs (just as it has with private insurance — oh, wait) and free seniors from the tyranny of their government insurance plan. Let’s see how that will go over.
Roll back the Affordable Care Act’s expansion of Medicaid and lay the groundwork for further cuts. All those millions of low-income Americans who got coverage through the expansion are suffering terribly, because “Medicaid’s promises are empty, its goals are unmet, and its dollars are wasted.” House Republicans would liberate them from this oppression by taking away their health insurance. The rest of the program would be block-granted so that states could have “flexibility,” which in practice means the flexibility to dump even more patients from their coverage.
Repeal the rest of the ACA. The subsidies that have allowed millions of people to afford insurance? Gone. Protection against denials for preexisting conditions? Not anymore. If you were expecting this to be accompanied by a few comically vague words about “patient-centered reforms” with which the ACA would be replaced while 16 million people are wondering what to do about the coverage they lost, then you’ve been paying attention.
Cut regulations on Wall Street. They’ve been having a real hard time over there, and they could use a helping hand.
Cut environmental regulations. Let’s face it, if the environment is ever going to learn to take care of itself, it needs a little tough love.
Cut Pell grants, which they describe as “targeting Pell Grants to students who need the most assistance.”
Block-grant food stamps, or turn them into a “State Flexibility Fund.” There’s that word again.
Most of these ideas are presented without any actual dollar figures attached to them, but there is “a magic asterisk” in a table located in an appendix, as Max Ehrenfreund points out. This is more than a trillion dollars of savings they claim they’ll get from “Other Mandatory” spending. Ehrenfreund explains:
Other than health care and Social Security, mandatory spending includes a range of programs such as food stamps, disability payments for veterans, the earned income tax credit, and Pell grants for college students. The budget document did not specify which would be cut. Even presuming very large cuts to these programs, though, it was still unclear how lawmakers expected to come up with $1.1 trillion, said Bob Greenstein, president of the Center on Budget and Policy Priorities.
By comparison, the Republican majority in the House voted in favor of reducing the budget for food stamps in 2013. The controversial measure passed only narrowly, with every Democrat and a few Republicans opposed. Many worried the cut was too severe, but it totaled $40 billion, just a sliver of the savings claimed in this week’s proposal.
At this stage, it isn’t so terrible for their proposals to lack specificity; this part of the budget process is meant to sketch a broad outline, while later legislation will set all the particulars. But let’s give the House Republicans credit. They aren’t shying away from talking about voucherizing Medicare (as their Senate colleagues did), and the rest of the document lays out a virtual war on the poor and middle class. They may toss the word “opportunity” in here and there, but the document is a bracing statement of Republican ideology.
Which is as it should be. Sure, the White House is going to criticize it, because the Democrats’ priorities are very different. Now we can have a debate. Should we turn Medicare into a voucher program? Should we toss millions of people off Medicaid and take away the subsidies that allow millions more to afford insurance? Should we cut food stamps and education grants? What are the alternatives? Those are the questions that debate should address, and then the two sides will have to arrive at a budget that incorporates the answers.
By: Paul Waldman, Senior Writer, The American Prospect; The Plum Line Blog, The Washington Post, March 18, 2015
“Romney’s Higher Education Plan”: A Giveaway To Wall Street Banks And Predatory Schools That Fund His Campaign
2012 presumptive presidential nominee Mitt Romney released his higher education plan Wednesday, decrying the nation’s “education crisis.” During a speechbefore the U.S. Chamber of Commerce, Romney blamed President Obama for rising tuition prices and increasing student debt.
Of course, tuition increases and growing debt are a phenomenon several decades in the making. And Romney’s plan would make the problem decidedly worse in two important ways, giving federal money away to Wall Street banks and predatory for-profit colleges, two industries to which Romney has extensive ties.
First, as he’s promised before, Romney intends to divert money away from student aid — instead giving it away to banks — by repealing Obama’s student loan reforms:
Reverse President Obama’s nationalization of the student loan market and welcome private sector participation in providing information, financing, and the education itself.
President Obama did not nationalize the student loan market. (Plenty of banks still make private sector student loans.) Instead, Obama and the Democrats cut private banks out of the federal student loan program, ending billions in subsidies that were needlessly going to banks for acting as loan middlemen. The money saved went into the Pell Grant program. Romney’s plan would entail taking away Pell money in order to pay Wall Street to service federal loans.
Second, Romney would remove regulations meant to protect students from predatory for-profit colleges:
Ill-advised regulation imposed by the Obama administration, such as the so-called “Gainful Employment” rule, has made it even harder for some providers to operate, while distorting their incentives.
This rule simply states that colleges leaving too many students crippled with debt and without good jobs lose their access to federal dollars. Many for-profit schools make nearly all of their revenue from the federal government — in the form of the various streams of aid used by their students — yet have much higher rates of student loan default than public schools. Only 11 percent of higher education students in the country attend for-profit schools, but they account for 26 percent of federal student loans and 44 percent of student loan defaults.
Romney is already intimately tied to the for-profit college industry. Inside Higher Ed noted that two of his advisers “have lobbied on behalf of the Apollo Group, the parent company of the University of Phoenix.” On the campaign trail, Romney has effusively praised Full Sail University, a for-profit institution. And it seems that his policy platform would be a boon to this industry which is, in many instances, extremely predatory.
By: Pat Garofalo, Think Progress, May 24, 2012
“A Severely Pandering Flip”: The Romney Pivot Is Underway
Today, during an exchange with reporters, Mitt Romney had some nice things to say about Paris. That’s commanding a lot of attention already on Twitter and elsewhere.
But this quote from Romney, in which he offered his support for the push to extend low interest rates on student loans — something Obama has been championing — is far more important:
I fully support the effort to extend the low interest rate on student loans. There was some concern that would expire halfway through the year. I support extending the temporarily relief on interest rates…in part because of the extraordinarily poor conditions in the job market.
And so the pivot is underway. At his press availability today, Romney had not even been asked about the student loan push — yet he deliberately went out of his way to clarify his support for the extension, anyway.
This would seem to put Romney at odds with Congressional Republicans. Obama has launched an all-out push to get Congress to extend a provision of a 2007 law that is set to expire on July 1st — doubling the interest rate for nearly eight million students each year. Congressional Republicans are expected to oppose it along party lines, arguing that the extension represents a fiscally irresponsible effort to buy the youth vote. But now Romney appears to have come out for it.
Michael Steel, a spokesman for John Boehner, denied that Romney’s position is necessarily at odds with that of House Republicans, telling me that Congressional GOPers are still committeed to finding a way to extend low interest rates. But asked if Republicans supported Obama’s push to extend the law immediately, Steel wouldn’t say.
And Romney’s stance does seem at odds with that of Republicans like Rep. John Kline, the chair of the House education committee, who said recently: “We must now choose between allowing interest rates to rise or piling billions of dollars on the backs of taxpayers.”
Romney laid down a harder line against government help with student loans during the primary. In March, a high school senior from Ohio asked Romney at a town hall meeting what he would do to help students pay for college. Romney replied: “It would be popular for me to stand up and say I’m going to give you government money to pay for your college, but I’m not going to promise that…don’t expect the government to forgive the debt that you take on.”
But the student loan fight is one that seems tailor made for Obama to use against Romney. The GOP candidate claims that instead of favoring government activism to combat inequality, we should simply unshackle the private sector and allow it to create opportunity for everyone. The student loan fight gives Obama and Dems a good way to call the GOP’s “opportunity” bluff,” by asking why Republicans who claim expanding opportunity is the real way to combat inequality refuse to support government action that will facilitate it.
At any rate, at a time when Romney is making an aggressive bid for the youth vote, arguing that Obama is responsible for the unemployment travails of recent college grads, it appears Romney has decided he can’t afford to oppose extending the low interest rates Obama is pushing for right now.
UPDATE: Obama campaign spokesperson Lis Smith responds:
Mitt Romney continues to make promises that he can’t keep. While he previously endorsed the Ryan budget, which would make deep cuts to Pell Grants and allow student loan rates to double, and last week said that he would gut the Department of Education to pay for his tax plan, today we heard yet another—and contradictory — position from Romney on student loans. As the list of promises Mitt Romney has made to the American people gets longer — from giving $5 trillion in tax breaks to the wealthiest Americans to claiming that he would balance the budget — the numbers just don’t add up.
The real question is whether Mitt Romney is being honest about his agenda and if so, whether he will come clean about the necessarily painful cuts he would have to make to meet all of his promises.
By: Greg Sargent, The Washington Post Plum Line, April 23, 2012
The Fake James Madison: Conservatives Selective Reading Of The Founding Fathers Threatens Social Security And Medicare
The House Republican plan to phase out Medicare is crashing and burning. Rep.-elect Kathy Hochul (D-NY) just won an impossible election victory by campaigning to keep Medicare alive. The Senate just soundly rejected the House GOP’s plan. Even former Speaker of the House Newt Gingrich, who once shut down the government in a failed attempt to force President Bill Clinton to support draconian Medicare cuts, blasted this Medicare-killing plan as “radical right-wing social engineering.”
Yet even as this concerted assault on Medicare hemorrhages support from elected officials, conservatives have a backdoor plan to get the courts to kill Medicare for them. Numerous lawmakers embrace a discredited theory of the Constitution that would not only end Medicare outright but also cause countless other cherished programs to be declared unconstitutional. Under this theory, Pell Grants, federal student loans, food stamps, federal disaster relief, Medicaid, income assistance for the poor, and even Social Security must all be eliminated as offensive to the Constitution.
In essence, supporters of this constitutional theory would so completely rewrite America’s social contract that they make Rep. Paul Ryan (R-WI), the author of the House GOP plan, look like Martin Luther King Jr. This issue brief explores the legal and historical gymnastics required to accept the conservative position that programs like Medicare and Social Security violate the Constitution.
The general welfare
Although Congress’s authority is limited to an itemized list of powers contained in the text of the Constitution itself, these powers are quite sweeping. They include the authority to regulate the national economy, build a national postal system, create comprehensive immigration and intellectual property regulation, maintain a military, and raise and spend money.
This last power, the authority to raise and spend money, is among Congress’s broadest powers. Under the Constitution, national leaders are free to spend money in any way they choose so long as they do so to “provide for the common defense and general welfare of the United States.” For this reason, laws such as Medicare and Social Security are obviously constitutional because they both raise and spend money to the benefit of all Americans upon their retirement.
Many members of Congress, however, do not believe the Constitution’s words mean what they say they mean. Consider the words of Sen. Rand Paul (R-KY), who recently explained the origin of the increasingly common belief that Congress’s constitutional spending power is so small that it can be drowned in a bathtub:
If you read [James] Madison, Madison will tell you what he thought of the Welfare Clause. He said, “Yeah, there is a General Welfare Clause, but if we meant that you can do anything, why would we have listed the enumerated powers?” Really, the Welfare Clause is bound by the enumerated powers that we gave the federal government.
In essence, Paul and many of his fellow conservatives believe Congress’s power to collect taxes and “provide for the common defense and general welfare of the United States” really only enables Congress to build post offices or fund wars or take other actions expressly authorized by some other part of the Constitution. According to this view, the spending power is not—as it is almost universally understood —itself an independent enumerated power authorizing Congress to spend money.
Paul’s understanding of the Spending Clause is not simply the idiosyncratic view of an outlier senator. Indeed, there is strong reason to believe his view is shared by the majority of his caucus. In the lead-up to the 2010 midterm elections, congressional Republicans released a “Pledge to America,” which broadly outlined their plans for governing if they were to prevail that November. In it, the lawmakers claimed that “lack of respect for the clear constitutional limits and authorities has allowed Congress to create ineffective and costly programs that add to the massive deficit year after year.”
This language suggests that many conservatives agree with Sen. Paul that Congress is somehow exceeding its constitutional authority to spend money. But there is no support for this view in constitutional text or in Supreme Court precedent.
In its very first decision to consider the issue—its 1936 decision in United States v. Butler—the Supreme Court unanimously affirmed that “the power of Congress to authorize expenditure of public moneys for public purposes is not limited by the direct grants of legislative power found in the Constitution,” as Sen. Paul would claim. Similarly, while the text of the Constitution establishes that “the exercise of the spending power must be in pursuit of ‘the general welfare,’” neither Sen. Paul nor the Pledge cites examples of laws that fail to meet this criterion.
Selectively reading Madison
While conservatives’ narrow understanding of the spending power finds no support in the text of the Constitution or in the Supreme Court’s decisions, Sen. Paul is correct that it does have one very famous supporter. In an 1831 missive, former President James Madison claimed that the best way to read the Spending Clause is to ignore its literal meaning and impose an extra-textual limit on Congressional power:
With respect to the words “general welfare,” I have always regarded them as qualified by the detail of powers connected with them. To take them in a literal and unlimited sense would be a metamorphosis of the Constitution into a character which there is a host of proofs was not contemplated by its creators.
Sen. Paul suggests that Madison’s extra-textual limit is both authoritative and binding—even if it means that programs ranging from Social Security to Medicare to Pell Grants must all cease to exist. But it is a mistake to assume that Madison’s preferred construction of the Spending Clause must restrict modern-day congressional action.
First of all, even the most prominent supporters of “originalism”—the belief that the Constitution must be read exactly as it was understood at the time it was written—reject the view that an individual framer’s intentions can change constitutional meaning. As the nation’s leading originalist, Supreme Court Justice Antonin Scalia, explains, “I don’t care if the framers of the Constitution had some secret meaning in mind when they adopted its words. I take the words as they were promulgated to the people of the United States, and what is the fairly understood meaning of those words.”
Indeed, Madison himself would have been dismayed by the claim that an established understanding of the Constitution must bend to his own singular views. Like Scalia, Madison rejected the notion that the framers’ personal desires can defeat the words they actually committed to text. As he explained to future President Martin Van Buren, “I am aware that the document must speak for itself, and that that intention cannot be substituted for [the intention derived through] the established rules of interpretation.”
Secondly, Madison embraced a way of interpreting the Constitution reminiscent of the evolving theories of constitutional interpretation that are so widely decried by modern conservatives. Although Rep. Madison opposed on constitutional grounds the creation of the First Bank of the United States in 1791, President Madison signed into law an act creating the Second Bank in 1816. He “recognized that Congress, the President, the Supreme Court, and (most important, by failing to use their amending power) the American people had for two decades accepted” the First Bank, and he viewed this acceptance as “a construction put on the Constitution by the nation, which, having made it, had the supreme right to declare its meaning.”
The Constitution is not a scavenger hunt
Even if we must, as Sen. Paul suggests, be bound by the Founding Fathers’ subjective intentions, Madison’s understanding of the Constitution hardly reflects the consensus view among those who created it. The truth is that Madison’s voice was merely one of many competing voices among the founding generation—and his vision of the Constitution was eventually rejected by no less a figure than George Washington himself.
Madison’s chief antagonist in early debates about constitutional meaning was Alexander Hamilton. As the nation’s first secretary of the treasury, Hamilton offered an interpretation of the Spending Clause that closely resembles the modern understanding:
These three qualifications excepted, the power to raise money is plenary, and indefinite; and the objects to which it may be appropriated are no less comprehensive, than the payment of the public debts and the providing for the common defence and “general Welfare.” The terms “general Welfare” were doubtless intended to signify more than was expressed or imported in those which Preceded; otherwise numerous exigencies incident to the affairs of a Nation would have been left without a provision. The phrase is as comprehensive as any that could have been used; because it was not fit that the constitutional authority of the Union, to appropriate its revenues shou’d have been restricted within narrower limits than the “General Welfare” and because this necessarily embraces a vast variety of particulars, which are susceptible neither of specification nor of definition.
Hamilton’s understanding of the spending power was one part of a broader, more expansive vision of congressional power that also included a robust interpretation of Congress’s power under the Constitution’s Necessary and Proper Clause. This broader understanding of Congress’s role prevailed over Madison’s very limited one during the earliest days of the Republic. Hamilton was the chief advocate who convinced President George Washington to sign the First Bank bill over Madison’s objections.
The point here is not that constitutional interpretations should be played like the card game “War,” where conservatives play the Madison card and everyone else plays the Washington card, and whoever plays the higher card wins. Rather, the point is simply that conservatives are wrong to treat the Founding Fathers’ statements as if they were a menu that lawmakers can search through and order the kind of Constitution they want. The Constitution is not a scavenger hunt.
Moreover, it is hardly necessary to dismiss Madison’s tremendous contributions to the Constitution itself in order to recognize why America should not relitigate a 230-year-old argument about America’s power to spend money on programs like Medicare. Hamilton was undoubtedly correct that his own reading of the Spending Clause is more consistent with the Constitution’s text than the reading offered by Madison—Madison himself concedes as much—but Madison was also correct to warn that the nation rejects a longstanding and widely accepted constitutional interpretation at its peril.
Millions of Americans depend upon programs such as Social Security, Medicare, and federal student loans, and America has grown into the wealthiest and most prosperous nation ever to exist in the years since these programs were enacted. Throughout this golden age, not one Supreme Court justice has questioned what Justice Scalia recently told a gathering of members of Congress: “It’s up to Congress how you want to appropriate, basically.”
Conclusion
Few things are certain in American politics, but after this week one thing is crystal clear—the American people cherish Medicare and they want no truck with an agenda that would destroy it. Sadly, far too many conservative lawmakers refuse to listen to their constituents on this basic and obvious point—to the extent of inventing a theory of constitutional interpretation that would achieve their goal of ending Medicare far sooner than the House Republicans’ ill-considered budget.
Conservatives will tell you that killing Medicare is the only way to read the Constitution consistently with the framers’ intent. Don’t believe them. The truth is that the only way to reach this conclusion is to hunt through the framers’ statements, cherry pick statements that conservatives like, and ignore the very text of the Constitution itself in the process.
By: Ian Millhiser, Center for American Progress, May 27, 2011