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Budget Compromise Shows Conservative Big Government Hypocrisy

They hate big government, those conservative Republicans—especially a big federal government, trying to meddle in Americans’ lives on everything from healthcare to light bulbs.

Except, of course, when it comes to the District of Columbia, which the GOP-controlled House seems to view as its own little political petri dish. As part of its pending agreement to cut $38 billion from the federal budget, negotiators decided to cave in to the GOP’s demand to bar the District from using its own money to subsidize abortions for poor women.

A lot of people don’t like abortion, think it should be illegal, and don’t think government should pay for it. That’s a simple equation: if you don’t like abortion, don’t have one. If you think it should be illegal, take it up with the courts, or push for a constitutional amendment banning it. Barring government money from being spent on a legal women’s health service—however controversial—is not defensible. We all have to pay for activities we don’t want, through our taxes or health insurance premiums. Some taxpayers would prefer that their contributions to the federal treasury not be used to pay for wars; some who pay health insurance premiums don’t want the pool of money to be used to pay for someone’s Viagra. But group funds don’t allow for individual micro-management.

The attack on the District of Columbia adds even more insult to the unforgivable injury Washingtonians already endure as the nation’s only legally disenfranchised voters. It’s bad enough that U.S. citizens in Washington—people who pay local and federal taxes, volunteer, serve in wars and on jury duty—don’t have a full voting representative in the House and have no U.S. senators. It’s the height of arrogance for members of the U.S. Congress from other parts of the country to presume to tell the District how to spend tax dollars it collected from its own citizens. Aside from the abortion restrictions, the pending budget agreement also reinstates and expands a private school voucher program for the District.

D.C. Mayor Vincent C. Gray, who was arrested at the Capitol this week in protest over the meddling, sounded just like a genuine political conservative as he described his objections: “I’m tired of being a pawn in a political game. All we want is to be able to spend our own money.”

How unfortunate that congressional Republicans, who demanded the control over the District—and Democrats, who caved into their bullying—can’t see their way to apply true conservative principles when it comes to the city where they work. Other jurisdictions have imposed a “commuter tax” on people who live in one state and work in another. Members of Congress pay taxes in their home districts and states, but not here. If they want a say in how District funds are used, maybe it’s time they started to pay up.

By: Susan Milligan, U.S. News and World Report, April 12, 2011

April 12, 2011 Posted by | Abortion, Big Government, Congress, Conservatives, Democracy, Democrats, Federal Budget, GOP, Health Care, Human Rights, Ideologues, Middle East, Politics, Republicans, Women, Women's Health, Womens Rights | , , , , , , , , | 1 Comment

Echoes Of Ayn Rand: How The GOP Came To View The Poor As Parasites And The Rich As Our Rightful Rulers

Last week the Republican Party sounded two distinct voices. First we heard the angry demands of the Tea Party, speaking through its hardline conservative allies in the House, pushing the government to the brink of a shutdown. But then emerged the soothing tones of Paul Ryan, the House Budget Committee chairman, who fashions himself the intellectual leader of the party, unveiling a budget manifesto he calls the “Path to Prosperity.”

Ryan portrays his goals in reassuringly pecuniary terms—he’s just the friendly neighborhood accountant here to help balance your checkbook. “I have a knack for numbers,” he chirps. ABC News compared him to a character in Dave, the corny 1993 movie about an average Joe who mistakenly assumes the presidency and calls in his CPA buddy—that would be Ryan—to scour the federal budget and bring it into balance. If he has any flaw, he just cares too much about rescuing the country from debt, gosh darn it!

In fact, the two streams—the furious Tea Party rebels and Ryan the earnest budget geek—both spring from the same source. And it is to that source that you must look if you want to understand what Ryan is really after, and what makes these activists so angry.

The Tea Party began early in 2009 after an improvised rant by Rick Santelli, a CNBC commentator who called for an uprising to protest the Obama administration’s subsidizing the “losers’ mortgages.” Video of his diatribe rocketed around the country, and protesters quickly adopted both his call for a tea party and his general abhorrence of government that took from the virtuous and the successful and gave to the poor, the uninsured, the bankrupt—in short, the losers. It sounded harsh, Santelli quickly conceded, but “at the end of the day I’m an Ayn Rander.”

Ayn Rand, of course, was a kind of politicized L. Ron Hubbard—a novelist-philosopher who inspired a cult of acolytes who deem her the greatest human being who ever lived. The enduring heart of Rand’s totalistic philosophy was Marxism flipped upside down. Rand viewed the capitalists, not the workers, as the producers of all wealth, and the workers, not the capitalists, as useless parasites.

John Galt, the protagonist of her iconic novel Atlas Shrugged, expressed Rand’s inverted Marxism: “The man at the top of the intellectual pyramid contributes the most to all those below him, but gets nothing except his material payment, receiving no intellectual bonus from others to add to the value of his time. The man at the bottom who, left to himself, would starve in his hopeless ineptitude, contributes nothing to those above him, but receives the bonus of all of their brains.”

In 2009 Rand began popping up all over the Tea Party movement. Sales of her books skyrocketed, and signs quoting her ideas appeared constantly at rallies. Conservatives asserted that the events of the Obama administration eerily paralleled the plot of Atlas Shrugged, in which a liberal government precipitates economic collapse.

One conservative making that point was Ryan. His citation of Rand was not casual. He’s a Rand nut. In the days before his star turn as America’s Accountant, Ryan once appeared at a gathering to honor her philosophy, where he announced, “The reason I got involved in public service, by and large, if I had to credit one thinker, one person, it would be Ayn Rand.” He continues to view Rand as a lodestar, requiring his staffers to digest her creepy tracts.

When Ryan warns of the specter of collapse, he is not merely referring to the alarming gap between government outlays and receipts, as his admirers in the media assume. (Every policy change of the last decade that increased the deficit—the Bush tax cuts, the Medicare prescription-drug benefit, the wars in Afghanistan and Iraq—Ryan voted for.) He is also invoking Rand’s almost theological certainty that when a government punishes the strong to reward the weak, it must invariably collapse. That is the crisis his Path to Prosperity seeks to avert.

Viewed as an effort to reduce the debt, Ryan’s plan makes little sense. Many of its proposals either have nothing to do with reducing deficits (repealing the financial-reform bill loathed by Wall Street) or actually increase deficits (making the Bush tax cuts permanent). It relies heavily on distant, phantasmal cuts. During the debate over health-care reform, Ryan insisted that Medicare cuts used to finance universal coverage might add up on paper but they’d never stick—they were too far down the road, and Congress would just walk them back when people complained.

But Ryan proposes identical cuts in his own plan. What’s more, he saves trillions of dollars from Medicare by imposing huge cuts on anybody who retires starting in 2022. So not only has he adopted the cuts he claimed would never come to pass because they’re too harsh and too distant, he imposes far harsher and more distant cuts of his own. Indeed, Alice Rivlin, the fiscally conservative Democratic economist who endorsed an earlier version of his Medicare plan, called his new plan unrealistic. (Ryan nonetheless continues to imply that she supports it.)

Ryan’s plan does do two things in immediate and specific ways: hurt the poor and help the rich. After extending the Bush tax cuts, he would cut the top rate for individuals and corporations from 35 percent to 25 percent. Then Ryan slashes Medicaid, Pell Grants, food stamps, and low-income housing. These programs to help the poor, which constitute approximately 21 percent of the federal budget, absorb two thirds of Ryan’s cuts.

Ryan spares anybody over the age of 55 from any Medicare or Social Security cuts, because, he says, they “have organized their lives around these programs.” But the roughly one in seven Americans (and nearly one in four children) on food stamps? Apparently they can have their benefits yanked away because they were only counting on using them to eat.

Ryan casts these cuts as an incentive for the poor to get off their lazy butts. He insists that we “ensure that America’s safety net does not become a hammock that lulls able-bodied citizens into lives of complacency and dependency.” It’s worth translating what Ryan means here. Welfare reform was premised on the tough but persuasive argument that providing long-term cash payments to people who don’t work encourages long-term dependency. Ryan is saying that the poor should not only be denied cash income but also food and health care.

The class tinge of Ryan’s Path to Prosperity is striking. The poorest Americans would suffer immediate, explicit budget cuts. Middle-class Americans would face distant, uncertain reductions in benefits. And the richest Americans would enjoy an immediate windfall. Santelli, in his original rant, demanded that we “reward people [who can] carry the water instead of drink the water.” Ryan won’t say so, but that’s exactly what he’s doing.

By: Jonathan Chait, Senior Editor, The New Republic

April 11, 2011 Posted by | Class Warfare, Congress, Conservatives, Corporations, Deficits, Democrats, Economy, Federal Budget, Financial Reform, GOP, Government, Government Shut Down, Health Reform, Ideologues, Income Gap, Journalists, Media, Medicare, Middle Class, Politics, Rep Paul Ryan, Republicans, Right Wing, Social Security, Tea Party, Uninsured, Wall Street, Wealthy | , , , , , , , , , , , | 1 Comment

The Efficacy Of A Republican Hostage Strategy

Matt Yglesias offered a helpful reminder this morning about leverage.

Details on the appropriations deal are still hard to come by, but you don’t need the details to know that substantial short-term cuts in domestic discretionary spending will hurt the poor while harming macroeconomic performance. The problem with not agreeing to the deal, of course, is that a government shutdown would also hurt the poor while harming macroeconomic performance.

If you genuinely don’t care about the interests of poor people and stand to benefit electorally from weak economic growth, this gives you a very strong hand to play as a hostage taker. And John Boehner is willing to play that hand.

Right.  A hostage strategy works well when the hostage taker makes it clear that killing the hostage is a perfectly viable option.

In this case, President Obama knew he was facing an unpleasant choice: accept spending cuts, which would hurt working families and undermine the economy, or allow Republicans to shut down the government, which would hurt working families and undermine the economy. As much as I really don’t like the agreement reached last night, I’m not unsympathetic to the dilemma.

But it’s worth appreciating the dynamic itself. The moment it was clear that the White House and congressional Democrats were determined to avert a shutdown, and congressional Republicans saw a shutdown as a reasonable, if not attractive, option — one that their base would celebrate — the rules of the game were already written to guarantee a discouraging result.

By some measures, Dems entered the process with the better hand. Democrats not only had the White House and the Senate majority, but polls showed the American mainstream opposed to the GOP agenda. But they also made clear that they were ready to make concessions — because they were determined to save that hostage, and Republicans didn’t much care either way.

Or as Greg Sargent put it this morning, “Republicans knew full well that the White House wouldn’t allow a government shutdown, allowing them to continue to move the spending-cut goalposts in the knowledge that Dems would follow — again ensuring that the debate unfolded on the GOP’s turf.”

The variable here would, ideally, be electoral considerations — Republicans wouldn’t kill the hostage because they’d be afraid of a voter backlash, creating a built-in incentive for the GOP to act responsibly. In theory, this gives Dems at least some leverage, too — “If you shut down the government, we’ll blame you and you’ll lose in 2012.”

So why doesn’t that work more? Probably because Republicans know that news organizations feel obligated to blame “both sides” at all times for everything, enough so that the GOP is willing to take its chances. Besides, even if they are blame, GOP officials can count on the party, the Koch Brothers, and Karl Rove to run a bunch of attack ads that will help them stay in office in anyway.

April 9, 2011 Posted by | Budget, Class Warfare, Congress, Conservatives, Deficits, Democracy, Democrats, Elections, GOP, Government Shut Down, Ideologues, Ideology, Journalists, Koch Brothers, Media, Middle Class, Politics, Pundits, Republicans, Right Wing, Voters, Wealthy | , , , , , , , , | Leave a comment

No More Fence Straddling: Even Moderates Should Condemn Paul Ryan’s Budget

Political moderates and on-the-fencers have had it easy up to now on budget issues. They could condemn “both sides” and insist on the need for “courage” in tackling the deficit.

Thanks to Rep. Paul Ryan’s budget and the Republicans’ maximalist stance in negotiations to avert a government shutdown, the days of straddling are over.

Ryan’s truly outrageous proposal, built on heaping sacrifice onto the poor, slashing scholarship aid to college students and bestowing benefits on the rich, ought to force middle-of-the-roaders to take sides. No one who is even remotely moderate can possibly support what Ryan has in mind.

And please, let’s dispense with the idea that Ryan is courageous in offering his design. There is nothing courageous about asking for give-backs from the least advantaged and least powerful in our society. It takes no guts to demand a lot from groups that have little to give and tend to vote against your party anyway.

And there is nothing daring about a conservative Republican delivering yet more benefits to the wealthiest people in our society, the sort who privately finance the big ad campaigns to elect conservatives to Congress.

Ryan gives the game away by including the repeal of financial reform in his “budget” plan. What does this have to do with fiscal balance? Welcome to the Wall Street Protection Act of 2011.

Oh, yes, and this budget has nothing to do with deficit reduction. Ryan would hack away at expenditures for the poor. The Center on Budget and Policy Priorities estimates he gets about two-thirds of his $4.3 trillion in actual cuts from programs for low- income Americans. Note that this $4.3 trillion almost exactly matches the $4.2 trillion he proposes in tax cuts over a decade. Welcome to the Bah Humbug Act of 2011.

But you’d expect a progressive to feel this way. What’s striking is that Ryan is pushing moderates to stand up for a government that will have enough money to perform the functions now seen as basic in the 21st century. These notably include helping those who can’t afford health insurance to get decent medical care, a goal Ryan would have the government abandon, slowly but surely.

Erskine Bowles and Alan Simpson, the co-chairs of the deficit commission and the heroes of the budget-cutting center, put out a statement saying some nice things about the idea of the Ryan budget. They called it “serious, honest, straightforward,” even though there is much about its accounting that is none of those.

But then they got to the real point, declaring themselves “concerned that it falls short of the balanced, comprehensive approach” needed for bipartisan accord because it “largely exempts defense spending from reductions and would not apply any of the savings from eliminating or reducing tax expenditures as part of tax reform to deficit reduction.”

Ryan, they argued, “relies on much larger reductions in domestic discretionary spending than does the commission proposal, while also calling for savings in some safety-net programs — cuts which would place a disproportionately adverse effect on certain disadvantaged populations.”

This is much like what I said, with an added layer of diplomacy. When even deficit hawks begin choking, however politely, on a proposal whose main motivation is ideological, you know there is an opening for a coalition between moderates and progressives on behalf of sane, decent government.

The Republican approach to shutdown talks should reinforce this possibility. Democrats have nearly given away the store to avoid a crackup, yet Republican leaders, under pressure from their right wing, have continued to ask for more and more and more. My word, even President Obama has finally gotten impatient.

However the shutdown saga ends, the negotiating styles of the two sides ought to tell moderates that they can no longer pretend that the two ends of our politics are equally “extreme.” No, conservatives are the ones who’ve been radicalized. The Ryan budget is definitive evidence of this.

It is conservatives who would transform our government from a very modestly compassionate instrument into a machine dedicated to expanding existing privileges while doing as little as possible for the marginalized and the aspiring — those who, with a little help from government, might find it a bit easier to reach for better lives.

Moderation involves a balance between government and the private sector, between risk and security, between our respect for incentives and our desire for greater fairness. The war against moderation has begun. Will moderates join the battle?

By: E. J. Dionne, Opinion Writer, The Washington Post, April 6, 2011

April 7, 2011 Posted by | Budget, Deficits, Government Shut Down, Health Care, Ideology, Politics, Rep Paul Ryan | , , , , , , , , , , | Leave a comment

The Budget Battles: Prosperity for Whom?

If the House Republican budget blueprint released on Tuesday is the “path to prosperity” that its title claims, it is hard to imagine what ruin would look like.

The plan would condemn millions to the ranks of the uninsured, raise health costs for seniors and renege on the obligation to keep poor children fed. It envisions lower taxes for the wealthy than even George W. Bush imagined: a permanent extension for his tax cuts, plus large permanent estate-tax cuts, a new business tax cut and a lower top income tax rate for the richest taxpayers.

Compared to current projections, spending on government programs would be cut by $4.3 trillion over 10 years, while tax revenues would go down by $4.2 trillion. So spending would be eviscerated, mainly to make room for continued tax cuts.

The deficit would be smaller, but at an unacceptable cost. Health care would be hardest hit, followed by nonsecurity discretionary spending — the sliver of the budget that encompasses annually appropriated programs. Those include education, scientific research, environmental preservation, investor protection, disease control, food safety, federal law enforcement and other areas that bear directly on the quality of Americans’ daily lives. The proposed cuts in such programs are $923 billion deeper than President Obama called for in his 2012 budget, which pushed the edge of what is politically possible.

Another big cut — $715 billion over 10 years — comes from mandatory spending other than Social Security and the big health care programs, a category that includes food stamps and federal retirement.

The blueprint does not call for any specific changes to Social Security, but, without explanation, it assumes a reduction of $1 trillion over 10 years in the program’s surplus. That would weaken the program by hastening the insolvency of Social Security.

When he unveiled this plan, Paul Ryan, a Republican of Wisconsin and the chairman of the House Budget Committee, declared, “This isn’t a budget. This is a cause.”

There is much truth in that. The blueprint is not a serious deficit reduction exercise for many reasons, the most important of which is that serious deficit reduction requires everything to be on the table, including tax increases. The plan released at the end of last year by the Obama deficit commission was one-third tax increases and two-thirds spending cuts. President Obama’s budget calls for a mix of tax cuts and tax increases, among the latter, letting high-end Bush tax cuts expire at the end of 2012. The Republican plan calls only for tax simplification. It would get rid of loopholes and reduce rates in a way that would not raise overall revenues but would invariably cut the tax bill of wealthy taxpayers for whom lower rates are more valuable than assorted loopholes.

The deficit is a serious problem, but the Ryan plan is not a serious answer. With its tax cuts above all, and spending cuts no matter the consequences, it is a recipe for more loud talk about the deficit but no real action.

By: Editorial, The New York Times, April 5, 2011

April 6, 2011 Posted by | Congress, Conservatives, Deficits, Economic Recovery, Federal Budget, GOP, Health Care, Health Care Costs, Medicaid, Medicare, Middle Class, Politics, President Obama, Rep Paul Ryan, Republicans, Social Security, Uninsured | , , , , , , | Leave a comment